Prospectus-Pictet--May-2020.Pdf

VISA 2020/159863-987-0-PC L'apposition du visa ne peut en aucun cas servir d'argument de publicité Luxembourg, le 2020-06-08 Commission de Surveillance du Secteur Financier

PICTET

Prospectus

MAY 2020

PICTET SICAV incorporated under Luxembourg law. The Fund is classified as UCITS in accordance with the UCITS Directive. The Shares may be listed on the Luxembourg Stock Exchange. The Board of Directors will decide which Classes of Shares are to be listed. Except for Mandatory Additional Information (as defined below), no one is authorised to give any information other than that contained in the Prospectus or in documents referred to herein. The English text alone is legally binding, except for specific requirements in passages from authorities with whom the Fund may have been registered. Subscriptions are accepted on the basis of the Prospectus, the relevant KIID and the latest audited annual or unaudited semi-annual accounts of the Fund as well as the Articles of Association. These documents may be obtained free of charge at the registered office of the Fund. Depending on applicable legal and regulatory requirements (comprising but not limited to MIFID in the countries of distribution, additional information on the Fund and the Shares may be made available to investors under the responsibility of local intermediaries / distributors (“Mandatory Additional Information”).

PREAMBLE If you have any doubts whatsoever as to the contents of the Prospectus or if you intend to subscribe to Shares, you should consult a professional adviser. No one is authorised to provide information or give presentations regarding the issue of Shares that are not contained in or referred to in the Prospectus or the reports annexed to it or that constitute Mandatory Additional Information. Neither the distribution of the Prospectus, nor the offer, issue or sale of Shares shall constitute a presentation that the information contained in the Prospectus is correct on any particular date after the date of the Prospectus. No person receiving a copy of the Prospectus in any jurisdiction may deal with it as if it constituted a call for funds unless, in that particular jurisdiction, such a call could be legally made to the person without him or her having to comply with registration requirements or other legal terms. Anyone wishing to buy Shares is responsible for ensuring compliance with the laws of the jurisdiction in question with regard to the acquisition of Shares, including obtaining any government approval or other authorisations that may be required, and complying with any other formalities that must be adhered to in that jurisdiction. The Shares have not been and will not be registered under the 1933 Act or registered or qualified under the securities laws of any state or other political subdivision of the United States. Shares may not be offered, sold, transferred or delivered either directly or indirectly in the United States or to, or on behalf of, or for the benefit of United States persons (as defined in Regulation S under the 1933 Act), except in certain transactions exempt from the registration provisions of the 1933 Act and any other securities laws of a state. Shares are offered outside the United States on the basis of an exemption from the registration regulations of the 1933 Act as set forth in Regulation S under the 1933 Act. Moreover, Shares are offered in the United States to accredited investors within the meaning of Rule 501(a) under the 1933 Act on the basis of exemption from the registration requirements of the 1933 Act, as set forth in Rule 506 under the 1933 Act. The Fund has not been and will not be registered under the 1940 Act and is, therefore, limited with respect to the number of beneficial owners who may be United States persons. The Articles of Association contain clauses intended to prevent United States persons from holding Shares and to enable the Board of Directors to conduct a forced redemption of those Shares that the Board of Directors deems necessary or appropriate in accordance with the Articles of Association. Moreover, any certificate or other document related to Shares issued to United States persons shall bear a legend to the effect that such Shares have not been registered or qualified under the 1933 Act and that the Fund has not been registered under the 1940 Act and shall refer to certain transfer and sale restrictions. Potential investors are warned that investment in the Fund entails certain risks. Investments in the Fund are subject to the usual risks concerning investments and, in some instances, may be adversely affected by political developments and/or changes in local laws, taxes, foreign exchange controls and exchange rates. Investing in the Fund may entail certain investment risks, including the possible loss of capital invested. Investors should be aware that the price of Shares may fall as well as rise.

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CONTENTS

PROSPECTUS ______6 MANAGEMENT AND ADMINISTRATION ______6 GLOSSARY ______7 GENERAL CLAUSES ______12 LEGAL STATUS ______12 INVESTMENT OBJECTIVES AND FUND STRUCTURE ______13 CLASSES OF SHARES ______15 ISSUING OF SHARES ______17 ISSUE PRICE ______18 REDEMPTIONS ______18 REDEMPTION PRICE ______19 SWITCH ______19 DEFERRAL OF REDEMPTION AND SWITCH REQUESTS ______19 COMPULSORY REDEMPTION OF SHARES ______19 SETTLEMENTS ______20 MARKET TIMING AND LATE TRADING ______20 CALCULATION OF THE NET ASSET VALUE ______20 SWING PRICING MECHANISM / SPREAD ______22 DILUTION LEVY ______23 SUSPENSION OF NET ASSET VALUE CALCULATION, SUBSCRIPTIONS, REDEMPTIONS AND SWITCHES ______23 MANAGEMENT AND ADMINISTRATION STRUCTURE ______24 SHAREHOLDER RIGHTS AND INFORMATION ______28 QUERIES AND COMPLAINTS ______30 FUND EXPENSES ______30 TIME LIMITATION ______31 TAX STATUS ______31 DATA PROTECTION______34 DURATION – MERGER – DISSOLUTION OF THE FUND AND COMPARTMENTS ______35 INVESTMENT RESTRICTIONS ______36 RISK CONSIDERATIONS ______48 ANNEX 1: FIXED-INCOME COMPARTMENTS ______62 1. PICTET – EUR BONDS ______62 2. PICTET – USD GOVERNMENT BONDS ______65 3. PICTET – EUR CORPORATE BONDS ______67 4. PICTET – GLOBAL EMERGING DEBT ______70 5. PICTET – GLOBAL BONDS ______73 6. PICTET – EUR HIGH YIELD ______76 7. PICTET – EUR SHORT MID-TERM BONDS ______79 8. PICTET – USD SHORT MID-TERM BONDS ______81 9. PICTET – CHF BONDS ______83 10. PICTET – EUR GOVERNMENT BONDS ______85 11. PICTET – EMERGING LOCAL CURRENCY DEBT ______87 12. PICTET – ASIAN LOCAL CURRENCY DEBT ______91

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13. PICTET – SHORT-TERM EMERGING LOCAL CURRENCY DEBT ______95 14. PICTET – LATIN AMERICAN LOCAL CURRENCY DEBT 99 15. PICTET – US HIGH YIELD ______102 16. PICTET – GLOBAL SUSTAINABLE CREDIT ______105 17. PICTET – EUR SHORT TERM HIGH YIELD ______108 18. PICTET – GLOBAL BONDS FUNDAMENTAL ______111 19. PICTET – EMERGING CORPORATE BONDS ______114 20. PICTET – EUR SHORT TERM CORPORATE BONDS ______117 21. PICTET – SHORT TERM EMERGING CORPORATE BONDS 120 22. PICTET – CHINESE LOCAL CURRENCY DEBT ______123 23. PICTET – ABSOLUTE RETURN FIXED INCOME ______127 24. PICTET – ASIAN CORPORATE BONDS ______132 25. PICTET – GLOBAL FIXED INCOME OPPORTUNITIES ______135 26. PICTET – ULTRA SHORT-TERM BONDS USD ______140 27. PICTET – ULTRA SHORT-TERM BONDS CHF ______143 28. PICTET – ULTRA SHORT-TERM BONDS EUR ______146 29. PICTET – SUSTAINABLE EMERGING DEBT BLEND ______149 ANNEX 2: EQUITY COMPARTMENTS ______152 30. PICTET – EUROPEAN EQUITY SELECTION ______152 31. PICTET – FAMILY ______154 32. PICTET – EMERGING MARKETS ______156 33. PICTET – EMERGING EUROPE ______160 34. PICTET – EUROPE INDEX ______162 35. PICTET – USA INDEX ______165 36. PICTET – QUEST EUROPE SUSTAINABLE EQUITIES ______168 37. PICTET – JAPAN INDEX ______170 38. PICTET – PACIFIC EX JAPAN INDEX ______173 39. PICTET – DIGITAL ______176 40. PICTET – BIOTECH ______179 41. PICTET – PREMIUM BRANDS ______182 42. PICTET – WATER ______185 43. PICTET – INDIAN EQUITIES ______188 44. PICTET – JAPANESE EQUITY OPPORTUNITIES ______192 45. PICTET – ASIAN EQUITIES EX JAPAN ______194 46. PICTET – GREATER CHINA ______198 47. PICTET – JAPANESE EQUITY SELECTION ______201 48. PICTET – HEALTH ______203 49. PICTET – EMERGING MARKETS INDEX ______206 50. PICTET – EUROLAND INDEX ______209 51. PICTET – SECURITY ______212 52. PICTET – CLEAN ENERGY ______215 53. PICTET – RUSSIAN EQUITIES ______218 54. PICTET – TIMBER ______220 55. PICTET – NUTRITION ______223 56. PICTET – GLOBAL MEGATREND SELECTION ______226 57. PICTET – GLOBAL ENVIRONMENTAL OPPORTUNITIES ______229

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58. PICTET – SMARTCITY ______232 59. PICTET – CHINA INDEX ______235 60. PICTET – INDIA INDEX ______238 61. PICTET – RUSSIA INDEX ______241 62. PICTET – EMERGING MARKETS HIGH DIVIDEND ______244 63. PICTET – QUEST EMERGING SUSTAINABLE EQUITIES ______247 64. PICTET – QUEST GLOBAL EQUITIES ______250 65. PICTET – ROBOTICS ______253 66. PICTET – GLOBAL EQUITIES DIVERSIFIED ALPHA ______256 67. PICTET – GLOBAL THEMATIC OPPORTUNITIES ______260 68. PICTET – CORTO EUROPE LONG SHORT ______263 ANNEX 3: BALANCED COMPARTMENTS AND OTHER COMPARTMENTS ______267 69. PICTET – PICLIFE ______267 70. PICTET –MULTI ASSET GLOBAL OPPORTUNITIES ______270 71. PICTET – GLOBAL DYNAMIC ALLOCATION ______275 72. PICTET – GLOBAL DIVERSIFIED PREMIA ______279 ANNEX 4: MONEY MARKET COMPARTMENTS ______284 73. PICTET – SHORT-TERM MONEY MARKET CHF ______297 74. PICTET – SHORT-TERM MONEY MARKET USD ______299 75. PICTET – SHORT-TERM MONEY MARKET EUR ______301 76. PICTET – SHORT-TERM MONEY MARKET JPY ______303 77. PICTET – SOVEREIGN SHORT-TERM MONEY MARKET USD ______305 78. PICTET-SOVEREIGN SHORT-TERM MONEY MARKET EUR 307 79. PICTET-ENHANCED MONEY MARKET USD ______309 80. PICTET-ENHANCED MONEY MARKET EUR ______311

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PROSPECTUS Suzanne Berg, Head of MANCO Oversight, Pictet Asset Management (Europe) S.A. Luxembourg MANAGEMENT AND ADMINISTRATION Registered Office Depositary Bank 15, Avenue J.F. Kennedy, L-1855 Luxembourg Pictet & Cie (Europe) S.A. 15A, Avenue J.F. Kennedy, L-1855 Luxembourg Board of Directors Chairman Transfer Agent, Administrative Agent and Paying Agent FundPartner Solutions (Europe) S.A. Olivier Ginguené, Chief Investment Officer, Pictet Asset 15, Avenue J.F. Kennedy, L-1855 Luxembourg Management S.A., Geneva Managers Directors Pictet Asset Management S.A. , Partner, Jérôme Wigny 60 Route des Acacias CH-1211 Geneva 73, Switzerland Elvinger Hoss Prussen, Luxembourg John Sample, Chief Risk Officer, Pictet Asset Management Limited Pictet Asset Management Limited, London Moor House, Level 11, 120 London Wall, London EC2Y 5ET, United Kingdom Geneviève Lincourt, Head of Product Management, Pictet Asset Management S.A., Geneva Pictet Asset Management (Singapore) Pte. Ltd 10 Marina Boulevard #22-01 Tower 2 Tracey McDermott, Independent Director, Gemini Governance & Advisory Solutions Marina Bay Financial Centre S.à.r.l. Luxembourg Singapore 018983 Management Company Pictet Asset Management (Hong Kong) Limited Pictet Asset Management (Europe) S.A. 9/F, Chater House, 8 Connaught Road Central, 15, Avenue J.F. Kennedy, L-1855 Luxembourg Hong Kong Pictet Asset Management (Europe) SA, Italian Branch Board of directors of the Management Company Chairman Via della Moscova 3 Cédric Vermesse, CFO, 20121 Milan, Italy Pictet Asset Management S.A., Geneva Pictet Alternative Advisors SA 60, route des Acacias Directors CH-1211 Geneva 73 Rolf Banz, Independent Director Switzerland Luca Di Patrizi, Head of Intermediaries, Crescent Capital Group LP Pictet Asset Management S.A., Geneva 11100 Santa Monica Boulevard Suite 2000 Nicolas Tschopp, General Counsel Los Angeles, CA 90025 Pictet Asset Management S.A., Geneva United States of America Fund Auditors Conducting Officers of the Management Company Deloitte Audit S.à r.l. Riadh Khodri, Head of Risk Management 20, Boulevard de Kockelscheuer L-1821 Luxembourg Pictet Asset Management (Europe) S.A., Luxembourg Legal Adviser Laurent Moser, Head of Compliance, Elvinger Hoss Prussen, Pictet Asset Management (Europe) S.A., Luxembourg société anonyme Benoît Beisbardt, Head of Manco Oversight & Services, 2, Place Winston Churchill, L-1340 Luxembourg Pictet Asset Management (Europe) S.A., Luxembourg,

Emmanuel Gutton Head of Legal, Pictet Asset Manage- ment (Europe) S.A., Luxembourg

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GLOSSARY

Benchmarks Regu- The Regulation (EU) 2016/1011 lation of the European Parliament and 1933 Act The United States Securities Act of the Council of 8 June 2016 of 1933, as amended. on indices used as benchmarks in financial instruments and fi- 1940 Act The United States Investment nancial contracts or to measure Company Act of 1940. the performance of investment funds. 2010 Act The Luxembourg Law of 17 De- cember 2010 relating to under- Board of Directors The board of directors of the takings for collective invest- Fund. ment, as amended from time to time. CAD Canadian Dollar.

1915 Law The Luxembourg Law of 10 Au- Calculation Day A day on which the net asset gust 1915 on commercial com- value per Share is calculated panies, as amended from time to and published as determined for time. each Compartment in the relevant Annex. Agent Banque Pictet & Cie S.A., acting as securities lender for the Fund. Central Admin- FundPartner Solutions (Europe) istration Agent SA has been designated by the Ancillary A holding of up to 49% of the Management Company as the total net assets of a Compart- transfer and registrar agent, ad- ment that differ from the main ministrative agent and paying investments of a Compartment agent of the Fund. when this term is used in respect of investments of a Compart- CFETS China Foreign Exchange Trade ment, unless otherwise indi- System & National Interbank cated in the Prospectus. Fund Centre.

Annex An annex to the Prospectus con- CHF Swiss Franc. taining the relevant Compart- ment’s details. ChinaClear The China Securities Depository and Clearing Corporation Lim- Annual General The annual general meeting of ited. Meeting the Shareholders. CIBM China Interbank Bond Market. Articles of Associa- The articles of association of the tion Fund, as amended from time to Class(es) of Shares A class of Shares with a specific time. (or Share Class(es)) fee structure or currency of de- nomination or any other specific AUD Australian Dollar. features.

Banking Day Unless otherwise indicated in CNH Offshore RMB. the Prospectus, a day on which the banks are normally open for CNY Onshore RMB. business in Luxembourg. For such purpose, the 24th of De- Compartment A separate pool of assets and li- cember is not considered as a abilities within the Fund, distin- Banking Day. guished mainly by its specific

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investment policy and objective, Environmental, social and gov- ESG as created from time to time. ernance (“ESG”). Environmen- tal issues may include but are CRS Law The Luxembourg Law of 18 De- not limited to pollution preven- cember 2015 on the automatic tion, climate change mitigation exchange of financial account & adaptation and natural re- information in the field of taxa- sources preservation. Social is- tion, as may be amended from sues may include but are not time to time. limited to human rights, labour standards and public health. CSRC The China Securities Regulatory Corporate governance issues Commission. may include but are not limited to board composition, executive CSSF The Commission de Surveillance remuneration, shareholders du Secteur Financier, the super- rights and business ethics. For visory authority of the Fund in sovereign issuers, governance is- Luxembourg. sues may include but are not limited to governmental stabil- CSSF Circular The CSSF circular 08/356 re- ity, corruption prevention, right 08/356 garding rules applicable to un- to privacy and judicial independ- dertakings for collective invest- ence. ment when they employ certain techniques and instruments re- ESMA The European Securities and lating to transferable securities Markets Association. and money market instruments, as amended from time to time. ESMA Guidelines The ESMA Guidelines on ETFs and other UCITS issues dated 1 CSSF Circular The CSSF circular 14/592 relat- August 2014. 14/592 ing to the ESMA Guidelines, as amended from time to time. ESMA Register The register of administrators and benchmarks maintained by Depositary Agree- The agreement entered into be- ESMA pursuant to the Bench- ment tween the Fund and the Deposi- marks Regulation tary Bank for an indefinite period in accordance with the provi- EU The European Union. sions of the 2010 Act and the Commission delegated regula- EUR Euro. tion (EU) 2016/438 of 17 De- cember 2010 supplementing Euro-CRS Directive The Council Directive the UCITS Directive. 2014/107/EU of 9 December 2014 amending Directive Depositary Bank Pictet & Cie (Europe) S.A. has 2011/16/EU as regards manda- been designated by the Fund as tory automatic exchange of infor- the depositary bank of the Fund. mation in the field of taxation.

Distributor Any entity belonging to the Pic- FATCA The Foreign Account Tax Com- tet Group authorised to perform pliance Act, a portion of the distribution services for the 2010 Hiring Incentives to Re- Fund. store Employment Act.

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administration and marketing Fund Pictet, a UCITS incorporated un- functions. der Luxembourg law as a société anonyme qualifying as a société Manager An entity mentioned under sec- d’investissement à capital variation “Management Activity” to ble. which the Management Com- pany has delegated the portfolio GBP Pound Sterling. management of one or several Compartments. German Invest- as referred to in some Compart- ment Tax Act ments’ investment policy and MiFID (i) the MiFID Directive, (ii) Reg- objectives, it introduces a spe- ulation (EU) No 600/2014 of cific tax regime applicable to the European Parliament and of German investors investing in the Council of 15 May 2014 on non-German investment funds markets in financial instruments and (iii) all EU and Luxembourg rules and regulations imple- HKD Hong-Kong Dollar. menting those texts.

HKEx Hong Kong Exchanges and MiFID Directive Directive 2014/65/EU of the Eu- Clearing Limited. ropean Parliament and of the Council of 15 May 2014 on mar- ILS Israeli Shekel. kets in financial instruments.

Institutional Inves- An investor within the meaning MMF Regulation The Regulation (UE) tor of Article 174 of the 2010 Act. 2017/1131 on money market funds JPY Japanese Yen MXN Mexican Peso. KIID The Key Investor Information Document, a pre-contractual OECD The Organisation for Economic document, issued for each Class Cooperation and Development. of Shares of each Compartment which contains the information PBC The People’s Bank of China. required by the 2010 Act and the Commission Regulation (EU) PRC The People’s Republic of China. No 583/2010 of 1 July 2010 implementing the UCITS Di- Professional Client A professional client within the rective as regards key investor meaning of Annex II, Section I of information and conditions to be the MiFID Directive. met when providing key investor information or the prospectus in Prospectus The prospectus of the Fund, as a durable medium other than pa- amended from time to time. per or by means of a website. QFII A Qualified Foreign Institutional Management Com- Pictet Asset Management (Eu- Investor pursuant to the relevant pany rope) S.A. has been designated PRC laws and regulations. by the Fund as the management company of the Fund to provide investment management,

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Repurchase Agree- A transaction at the conclusion SSE Shanghai-Stock Exchange. ment of which the Fund is required to repurchase the asset sold and SSE Securities China A-Shares listed on the the buyer (the counterparty) SSE. must relinquish the asset held. Stock Connect The Shanghai-Hong Kong Stock Reverse Repur- A transaction at the conclusion Connect and the Shenzhen- chase Agreement of which the seller (the counter- Hong Kong Stock Connect. party) is required to repurchase the asset sold and the Fund SZSE Shenzhen-Stock Exchange. must relinquish the asset held. SZSE Securities China A-Shares listed on the RMB Renminbi, the official currency SZSE. of the PRC. Third Country Any country which is not Mem- RQFII A Renminbi Qualified Foreign ber State of the EU. Institutional Investor under the RQFII Regulations. UCITS An undertaking for collective investment in transferable securi- RQFII Regulations The laws and regulations govern- ties. ing the establishment and operation of the RQFII regime in the UCITS Directive Directive 2009/65/EC of the Eu- PRC, as may be promulgated ropean Parliament and of the and/or amended from time to Council of 13 July 2009 on the time. coordination of laws, regulations and administrative provisions re- SAFE The PRC State Administration of lating to undertakings for collec- Foreign Exchange. tive investment in transferable securities, as amended or sup- SEC The Securities Exchange Com- plemented from time to time. mission. USD United States Dollar. Securities Lending A transaction by which a lender Agreement transfers securities subject to a Valuation Day A day as at which the net asset commitment that the borrower value per Share is calculated as will return equivalent securities determined for each Compart- on a future date or when re- ment in the relevant Annex. quested to do so by the lender. VaR The Value at Risk. SEHK Stock Exchange of Hong Kong. Week Day Unless otherwise indicated in SEK Swedish Krona. the Prospectus, any day of the week other than Saturday or Share(s) A share in any one Class of Sunday. For the purpose of the Share. calculation and the publication of the net asset value per Share Shareholder(s) A holder of Shares. as well as for the count of payment value date, the following SGD Singapore Dollar. days are not considered as a

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Week Day: 1st of January, Easter Monday, 25th and 26th of Decem- ber.

ZAR South African Rand.

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GENERAL CLAUSES Although MSCI obtains information used for the calculation of the MSCI indexes derived from sources consid- The distribution of the Prospectus is authorised only if ered reliable by MSCI, none of the MSCI parties author- accompanied by a copy of the Fund’s latest annual re- ises or guarantees the originality, accuracy and/or com- port and the last semi-annual report, if published after pleteness of any MSCI index or any information in this the annual report. These reports form an integral part of respect. None of the MSCI parties makes any warranty, the Prospectus. Depending on applicable legal and regu- express or implied, as to results to be obtained by the latory requirements (comprising but not limited to Mi- holder of the authorisation, its clients or counterparties, FID) in the countries of distribution, Mandatory Addi- issuers and owners of the funds, or any other person or tional Information may be made available to investors. entity, arising from the use of any MSCI index or any information in this respect relating to the authorised rights Information relating to the Pictet – Europe Index, or for any other use. None of the MSCI parties is respon- Pictet – Japan Index, Pictet – Pacific Ex Japan Index, Pictet – Emerging Markets Index, Pictet – Euroland sible for any error, omission or interruption of any MSCI Index, Pictet – China Index, Pictet – India Index and index, or in relation to it or any information in this re- Pictet – Russia Index Compartments: spect. Moreover, none of the MSCI parties makes any These Compartments are not promoted, recommended, express or implied warranties, and the MSCI parties dis- or sold by Morgan Stanley Capital International Inc. claim all warranties of merchantability or fitness for a (“MSCI”), or by its affiliates, information providers or particular purpose with respect to any MSCI index or any any other third parties (hereinafter the “MSCI parties”) information in this respect. Without limiting any of the involved in or associated with the compilation, calcula- foregoing, none of the aforementioned MSCI parties tion or creation of any MSCI index. The MSCI indexes shall have any liability for any direct, indirect, special, are proprietary to MSCI. MSCI and the names of the punitive or any other damages (including lost profits), MSCI indexes are service marks of MSCI or its affiliates even if notified of the probability of such damages. and their use by the Management Company has been LEGAL STATUS authorised in certain instances. None of the MSCI par- The Fund is an open-ended investment company ties makes any express or implied warranties or repre- (SICAV) incorporated under Luxembourg law in accord- sentations to the owners of these Compartments, or to ance with the provisions of Part I of the 2010 Act. The any member of the public, regarding the advisability of Fund was incorporated for an unlimited period on investing in funds in general or in these Compartments 20 September 1991 under the name of Pictet Umbrella in particular, or the ability of any MSCI index to track Fund and the Articles of Association were published in the performance of a corresponding stock market. MSCI the Official Journal of the Grand Duchy of Luxembourg, and its affiliates are the licensors of certain registered the Mémorial C, Recueil des Sociétés et Associations du trademarks, service marks and trade names, as well as Grand Duché de Luxembourg, on 29 October 1991. the MSCI indexes, which are determined, compiled and They were last amended by a notarial deed dated 17 De- calculated by MSCI independently of these Compart- cember 2018. The Articles of Association were filed ments, the issuer or the owner of these Compartments. with the Luxembourg Trade and Companies Register, None of the MSCI parties is bound to take into account where they may be viewed and where copies may be ob- the needs of the issuers or owners of these Compart- tained. ments when determining, compiling or calculating the The Fund is registered in the Luxembourg Trade and MSCI indexes. None of the MSCI parties is responsible Companies Register under No. B 38034. for or participates in decisions regarding the issue date for these Compartments, their prices or the quantities to At all times, the Fund’s capital will be equal to the net be issued, nor in the determination or calculation of the asset value and will not fall below the minimum capital redeemable amount of these Compartments. None of of EUR 1,250,000. the MSCI parties is obligated or responsible to the own- The Fund’s fiscal year begins on 1 October and ends on ers of these Compartments with respect to the admin- 30 September of the following year. istration, marketing or offering of these Compartments.

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INVESTMENT OBJECTIVES AND FUND STRUCTURE Benchmark administrators located in the EU whose indi- The Fund is designed to offer investors access to a se- ces are used by the Fund as at the date of the Prospectus, lection of markets worldwide and a variety of in-vest- are all included in the ESMA Register. ment techniques through a range of Compartments. Benchmark administrators located in a Third Country The Board of Directors determines the investment policy whose indices are used by the Fund benefit from the for the various Compartments. Risks will be spread transitional arrangements afforded under the Benchmark broadly by diversifying investments over a large range of Regulation and accordingly may not appear on the transferable securities, the choice of which will not be ESMA Register. limited - except under the terms of the restrictions specified in the section: “Investment Restrictions” below – As at the date of the Prospectus, the relevant benchmark administrators included in the ESMA Register are neither in terms of regions, economic sectors, or the (i) MSCI Limited which is the benchmark administrator type of transferable securities used. of the MSCI benchmarks, (ii) ICE Benchmark Admin- Responsible Investment istration Limited which is the benchmark administrator In line with Pictet Asset Management commitment to of the Libor benchmarks and of the ICE BofA bench- responsible investment: marks (iii) S&P DJI Netherlands B.V. which is the benchmark administrator of S&P Dow Jones Indices (iv) - The Management Company ensures that voting Bloomberg Index Services Limited which is the bench- rights are exercised systematically. mark administrator of the Bloomberg Barclays benchmarks, (v) J.P. Morgan Securities PLC which is the The Managers may engage with issuers in order - benchmark administrator of the JP Morgan benchmarks, to positively influence ESG practices. (vi) FTSE International Limited which is the benchmark administrator of the FTSE Fixed Income benchmarks, - The Fund adopts an exclusion policy relating to (vii) SIX Financial Information Nordic AB which is the direct investment in companies involved in the benchmark administrator of the SBI®-Family bench- production of anti-personnel mines, cluster mu- marks, (viii) European Money Markets Institute which is nitions, biological and chemical weapons (in- the benchmark administrator of the EONIA benchmark. cluding white phosphorous) and nuclear weapons from countries not signatory to the Treaty on In addition, the Management Company maintains a writ- the Non-Proliferation of Nuclear Weapons (NPT) ten plan setting out the actions that will be taken in the as defined from time to time by the Management event that a benchmark materially changes or ceases to Company. be provided. A paper copy is made available free of charge upon request at the Management Company’s reg- - Relevant information relating to additional ESG considerations is specified in the annex of the istered office. Compartment concerned Reference Index For further information, please refer to www.assetman- As regards to Compartments that are actively managed agement.pictet (i.e. Compartments the investment objective of which is not the replication of the performance of an index), a Utilisation of Benchmarks reference index may be used for each Compartment by

Benchmarks Regulation the relevant Manager(s) for the following purposes: (i) In accordance with the provisions of the Benchmarks portfolio composition, (ii) risk monitoring, (iii) perfor- Regulation, supervised entities (such as UCITS and mance objective and/or (iv) performance measurement, UCITS management companies) may use benchmarks as more fully detailed in the Annexes. For those actively (within the meaning of the Benchmarks Regulation) in managed Compartments, there is no intention to track or the EU if the benchmark is provided by an administrator replicate the reference index. which is included in the ESMA Register. The degree of similarity of the performance of each actively managed Compartment and of its reference index

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is disclosed in the Annexes together with the name of The pooling method will comply with the investment the reference index. policy of each of the Compartments concerned.

The reference indices may change over time in which Compartment case the Prospectus will be updated at the next occa- The net assets forming each Compartment are repre- sion and Shareholders will be informed via the annual sented by Shares, which may be of different classes. All and semi-annual reports. the Compartments together constitute the Fund. If Clas- ses of Shares are issued, the relevant information will be Pooling specified in the Annexes to the Prospectus. For the purpose of efficient management and if the investment policies of the Compartments so allow, the The Management Company may decide, in the interest board of directors of the Management Company may de- of Shareholders, that some or all of the assets belonging cide to co-manage some or all of the assets of certain to one or more Compartments will be invested indirectly, Compartments. In this case, the assets from different through a company wholly controlled by the Manage- Compartments will be jointly managed using the tech- ment Company. Such a company conducts, exclusively nique mentioned above. Assets that are co-managed will for the benefit of the Compartment(s) concerned, the be referred to using the term “pool”. These pools will management, advisory or distribution activities in the only be used for internal management purposes. They country in which the subsidiary company is established will not constitute distinct legal entities and will not be with respect to the redemption of the Shares of the directly accessible to investors. Each co-managed Com- Compartment in question when requested by Sharehold- partment will have its own assets allocated to it. ers exclusively for itself or for the Shareholders.

When the assets of a Compartment are managed using For the purposes of the Prospectus, references to “in- this technique, the assets initially attributable to each vestments” and “assets” respectively mean either in- co-managed Compartment will be determined according vestments made and assets held directly or investments to the Compartment’s initial participation in the pool. made and assets held indirectly through the aforemen- Thereafter, the composition of the assets will vary ac- tioned companies. cording to contributions or withdrawals made by the In the event that a subsidiary company is used, this will Compartments. be specified in the Annex relating to the Compart- This apportionment system applies to each investment ment(s) concerned. line of the pool. Additional investments made on behalf The Board of Directors is authorised to create new Com- of the co-managed Compartments will therefore be allo- partments. A list of the Compartments available to date cated to these Compartments according to their respec- is included in the Annexes to the Prospectus, describing tive entitlements, while assets sold will be similarly de- their investment policies and key features. ducted from the assets attributable to each of the co- managed Compartments. This list is an integral part of the Prospectus and will be updated whenever new Compartments are created. All banking transactions involved in the running of the Compartment (dividends, interest, non-contractual fees, For each Compartment, the Board of Directors may also expenses) will be accounted for in the pool and reas- decide to create two or more Classes of Shares whose signed for accounting to each of the Compartments on a assets will generally be invested in accordance with the pro rata basis on the day the transactions are recorded specific investment policy of the Compartment in ques- (provisions for liabilities, bank recording of income tion. However, the Classes of Shares may differ in terms and/or expenses). On the other hand, contractual fees of (i) subscription and/or redemption fee structures, (ii) (custody, administration and management fees, etc.) exchange rate hedging policies, (iii) distribution policies will be accounted for directly in the respective Compart- and/or (iv) specific management or advisory fees, or (v) ments. any other specific features applicable to each Class of Shares. The assets and liabilities attributable to each Compart- ment will be identifiable at any given moment.

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CLASSES OF SHARES meet certain criteria defined by the Management Com- In each Compartment, Shares may be divided into “P” pany, including but not limited to, minimum investment “I”, “IS”, “A”, “J”, “JS” “S”, “Z”, “MG”, “E” “D1” and amount, country of incorporation, type of organisation. “R” Shares. Successive “A” shares can be created and will be num- Eligibility criteria may apply to certain Classes of Shares bered “A1”, “A2”, “A3”, etc. which may also be subject to (i) specific minimum ini- “J” Shares are intended for Institutional Investors. tial subscription amount, (ii) different front-end and “JS” Shares may be created within certain indexed back-end load and (iii) performance fee as described below. Compartments in order to distinguish them, if needed, from “J” Shares with respect to the application of the Shares may also be issued in various currencies and anti-dilution measures as described in the section may have a different distribution policy. “Swing pricing mechanism Spread”.

Hedging may be implemented for some Classes of “JS” Shares will be subject to the same conditions as Shares. “J” Shares. “S” Shares (“Staff”) are exclusively reserved for employ- It is the responsibility of each investor to ensure that ees of the Pictet group. they meet the conditions for accessing the Class of Shares in which they wish to subscribe. “Z” Shares are reserved for Institutional Investors who have entered into a specific remuneration agreement Investors should check the website www.assetmanage- with an entity of the Pictet Group. ment.pictet for the availability of Share Classes. “MG” Shares are reserved for investors expressly ap- Eligibility criteria proved by the Manager of the Compartment concerned. “P” Shares are available to all investors without re- “E” Shares are intended for Institutional Investors will- strictions. ing to support the launch of a new Compartment and “I” Shares are available to (i) such financial intermedi- that meet certain criteria defined by the Management aries which, according to regulatory requirements, do Company, including but not limited to, minimum invest- not accept and retain inducements from third parties (in ment amount, period of time or type of organisation. the EU, this will include financial intermediaries provid- « D1 » Shares are reserved to investors who are clients ing discretionary portfolio management or investment of UBS Wealth Management and who have individual advice on an independent basis); (ii) Such financial in- fee arrangements with UBS Wealth Management. termediaries which, based on individual fee arrangements with their clients, do not accept and retain in- “R” Shares are intended for financial intermediaries or ducements from third parties; (iii) Institutional Investors platforms that have been approved by the Management investing on their own account. With respect to investors Company or by the Distributor and that have fee ar- that are incorporated or established in the European Un- rangements with their clients which are based entirely ion, Institutional Investor refers to per se Professional on accepting and keeping commissions. Clients. Minimum investment amount “IS” Shares may be created within certain indexed Compartments in order to distinguish them, if needed, “P”, “S”, “Z”, “MG” and R Shares are not subject to any minimum investment. from “I” Shares with respect to the application of the anti-dilution measures as described in the section “J”, “JS”, and” E” Shares are subject to a minimum in- “Swing pricing mechanism /Spread”. itial amount specified in the Annex for each Compart- ment. Subscriptions in a Class of Shares other than “IS” Shares will be subject to the same conditions as these Classes of Shares will not be taken into account in “I” Shares. calculating the initial minimum subscription amount. However, the Board of Directors reserves the right to “A” Shares are intended for Institutional Investors that

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accept subscriptions for an amount below the required decided by the Annual General Meeting minimum initial amount, at its discretion. The Board of Directors may also decide to issue “dm” Unless otherwise decided by the Management Company, Shares for which a monthly dividend may be distributed. “I”,”IS” and “D1” Shares are also subject to a mini- This dividend will normally be paid to Shareholders in mum initial subscription, which is specified in the an- the Class of Shares concerned who are registered in the nex to each compartment. Shareholders’ register on the 20th day of the month (or

Unless otherwise decided by the Management Company the following day if that day is not a Banking Day) and “A” shares are also subject to a minimum initial sub- will normally be paid within 4 Banking Days in the cur- scription which will be stated on our website www.asset- rency of the Class of Shares after the ex-date. Unless management.pictet. otherwise decided by the Management Company, no fiscal reporting for German Shareholders will be provided

for these Classes of Shares. The minimum initial investment for Shares issued in a currency other than the Compartment’s reference cur- The Board of Directors may also decide to issue “ds” rency is the minimum initial investment amount appli- Shares for which a semi-annual dividend may be distrib- cable to the Class of Shares concerned and expressed in the Compartment’s reference currency converted as at uted. This dividend will normally be paid to Sharehold- the relevant Valuation Day into the applicable currency ers in the Class of Share concerned who are registered for that Class of Shares. in the Shareholders’ register on the 20th day of the months of February and August (or the following day if Distribution policy that day is not a Banking Day) and will normally be paid The Board of Directors reserves the right to introduce a within 4 Banking Days in the currency of the Class of distribution policy that may vary among Compartments and Classes of Shares in issue. Share after the ex-date. Unless otherwise decided by the Management Company, no fiscal reporting for German In addition, the Fund may decide to distribute interim Shareholders will be provided for these Classes of Share. dividends. Currency and hedging The Fund may distribute the net investment revenue, re- In each Compartment, Shares may be issued in different alised capital gains, unrealised capital gains and capi- currencies which may therefore differ from the Compart- tal. ment’s reference currency as decided from time to time

Investors should thus be aware that distributions may by the Board of Directors. effectively reduce the net asset value of the Fund. These Shares may be (i) hedged, in which case they will

contain an “H” in their name, or (ii) not No income will be distributed if the Fund’s net assets after distribution would fall below EUR 1,250,000. hedged.

The Fund may distribute free bonus Shares within the Hedged Shares classes can be issued using different same limits. currency hedging methodologies:

Dividends and allotments not claimed within five years “H” Shares aim to minimise the effect of currency of their payment date will lapse and revert to the movements between the Compartment’s reference cur- Compartment or to the relevant Class of Shares in the rency and the relevant hedged Share Class currency Compartment concerned. (Net Asset Value Hedge). Shares may be issued as accumulation Shares or distri- “H1” Shares aim to minimise the effect of currency bution Shares. movements between the portfolio’s holdings and the rel-

Any revenue attributable to accumulation Shares will not evant hedged Share Class currency, with the exception be distributed but rather invested in the Class of Shares of currencies where it is impractical or not cost effective concerned. to do so (Portfolio Hedge).

“dy” distribution Shares will be entitled to a dividend as

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“H2 BRL” Shares aim to provide investors with currency Listing of Shares exposure to BRL by hedging the portfolio’s holdings against BRL, with the exception of currencies where it is Shares may be listed on the Luxembourg Stock Ex- impractical or not cost effective to do so. change. The Board of Directors will decide which Clas- ses of Shares to be listed. Even though the reference currency of the Share Class is BRL, the net asset value of the Share Class shall be ISSUING OF SHARES published in the reference currency of the relevant Com- Subscriptions to Shares in each Compartment in opera- partment and the settlement currency for subscription tion will be accepted at their issue price, as defined in and redemption will be the reference currency of the rel- the “Issue Price” section below, by the Transfer Agent evant Compartment. and all other institutions duly authorised by the Fund.

Front-and back-end load Provided that the securities contributed comply with the investment policy, Shares may be issued in return for a For “P” Shares, the front-end load for intermediaries contribution in kind, which will be subject to a report will be no more than 5% and the back-end load no more prepared by the Fund’s auditor to the extent that it is re- than 3%. quired by Luxembourg law. Any costs incurred will be borne by the investor. For “I”, “IS”, “J” “JS”, “Z”, “MG”, “E” “D1” “A” and “R” Shares, the front-end load for intermediaries will be Subscription requests must be received by the Transfer Agent in relation to a Valuation Day by the relevant cut- no more than 5% and the back-end load no more than off time as specified for each Compartment in the An- 1%. nexes at the latest.

For “S” Shares, there will be no front-end load nor back- For any subscription request received by the Transfer end load for intermediaries. Agent in relation to a Valuation Day after the relevant cut-off time as specified for each Compartment in the Performance fee Annexes, the issue price to be applied will be that cal- For Compartments stipulating that the Manager may re- culated as at the next Valuation Day. ceive a performance fee as specified in the Annexes, the Board of Directors may decide to launch the abovemen- The issue price must be paid to the Depositary for Pictet tioned Classes of Shares without a performance fee in referencing the relevant Class(es) of Shares and Com- which case they will contain an “X” in their name. partment(s). These Shares are suitable for investors who do not wish to be exposed to performance fees and who therefore ac- The Fund may reject any application to subscribe for cept a higher management fee than the one applied to Shares, at its discretion. the corresponding Class of Shares (except for Z Share Classes as investors have entered into a specific remu- The Fund may, at any time and at its discretion, tempo- neration agreement with an entity of the Pictet Group). rarily discontinue, permanently cease or limit the issue These Shares will be subject to the same conditions of of Shares in one or more Compartments to natural or le- access and the same front- and back-end loads as the gal entities resident or domiciled in certain countries or corresponding Classes of Shares. territories.

Investors choose the Class of Shares to which they wish It may also prohibit them from acquiring Shares if such to subscribe, bearing in mind that, unless otherwise re- a measure is deemed necessary to protect all stricted in the Annexes to the Prospectus, any investor Shareholders and the Fund. meeting the access conditions of a particular Class of Shares may request switch of his or her Shares to For the reasons outlined in the section “TAX STATUS” Shares of that Class of Shares with the exception of the below, Shares may not be offered, sold, assigned or de- “J” Share Classes (see “Switch” section below). livered to investors who are not i) participating foreign financial institutions (“PFFIs”),(ii) deemed-compliant Conditions for the switch of Shares are described more foreign financial institutions, (iii) non-reporting IGA for- fully in the section “Switch”. eign financial institutions, (iv) exempt beneficial owners (v), Active NFFEs or (vi) non-specified US persons, all as defined under FATCA, the US FATCA final

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regulations and/or any applicable intergovernmental intermediaries and/or distributors involved in the distri- agreement on the implementation of FATCA. bution of the Shares.

FATCA non-compliant investors may not hold Shares Front-end load for intermediaries will vary according to and Shares may be subject to compulsory redemption if the Class of Share, as described in the “classes of this is deemed appropriate for the purpose of ensuring Shares” section. the Fund's compliance with FATCA. Investors will be required to provide evidence of their status under FATCA This issue price will be increased to cover any duties, by means of any relevant tax documents, in particular a taxes and stamp duties due. “W-8BEN-E” or any other official applicable form from the US Internal Revenue Service that must be renewed The Board of Directors will be authorised to apply cor- on a regular basis according to applicable regulations. rections to the net asset value as described in the section “Swing pricing mechanism / Spread” below. The fight against money laundering and the financing of terrorism In certain exceptional circumstances, the Board of Di- rectors will also be authorised to apply a dilution levy on In accordance with international rules and applicable the issue of Shares, as described below in the section Luxembourg laws and regulations and pursuant to the “Dilution Levy”. Luxembourg Law of 12 November 2004 on the fight against money laundering and the financing of terror- REDEMPTIONS ism, as amended, and CSSF circulars, financial sector Shareholders are entitled to apply for the redemption of professionals are subject to obligations whose purpose is some or all of their Shares at any time based on the to prevent the use of undertakings for collective invest- redemption price, as stipulated in the “Redemption ment for money laundering and the financing of terror- Price” section below, by sending the Transfer Agent or ism. These provisions require the Transfer Agent to iden- other authorised institutions a redemption request ac- tify Shareholders and they may request additional docu- companied by their Share certificates, if issued. ments, as it deems necessary, to establish the identity of the investors and beneficial owners in accordance Any redemption request is irrevocable unless the deter- with Luxembourg laws and regulations. mination of the net asset value is suspended in accordance with the section “Suspension of net asset value In the event of a delay or failure to provide the required calculation, subscriptions, redemption and switches” documents, subscription requests will not be accepted, below. and payment of the redemption price may be delayed. Subject to the approval of the Shareholders concerned, Neither the Fund, nor the Transfer Agent can be held li- the Board of Directors may allow in-kind payment for able for the delay or non-execution of transactions when Shares. The Fund’s statutory auditor will report on any the investor has not provided the documents or has pro- such in-kind payment, giving details of the quantity, de- vided incomplete documents. nomination and valuation method used for the securities in question. The corresponding fees will be charged to Shareholders may also be asked to provide additional or the Shareholders in question. updated documents in accordance with the obligations for on-going control and supervision in accordance with Redemption applications must be received by the Trans- applicable laws and regulations. fer Agent in relation to a Valuation Day by the relevant cut-off time as specified for each Compartment in the ISSUE PRICE Annexes at the latest. The issue price for Shares in each Compartment is equal to the net asset value of each Share, calculated on a For any redemption application received by the Transfer forward pricing basis as at the relevant Valuation Day on Agent in relation to a Valuation Day after the relevant the relevant Calculation Day. cut-off time as specified for each Compartment in the Annexes, the redemption price to be applied will be that In accordance with applicable laws and regulations (in- calculated as at the next Valuation Day on the relevant cluding but not limited to MiFID), this price may be in- Calculation Day. creased by fees paid to financial intermediaries, which will not exceed 5% of the net asset value per Share The equivalent amount paid for Shares submitted for re- Compartment and will be paid to financial demption shall be paid by credit transfer in the currency of the Class of Shares in question, or in another

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currency, in which case any costs for currency conversion may be borne by the Compartment as specified in However, Shares cannot be switched into “J” Shares, the annexes, see “Redemption Price” section below). unless the Board of Directors decides otherwise.

REDEMPTION PRICE Moreover, a switch transaction into Shares of another The redemption price for Shares of each Compartment Compartment is acceptable only between Compartments is equal to the net asset value of each Share calculated which have the same Valuation Day and Calculation Day. on a forward pricing basis as of the applicable Valuation Day on the applicable Calculation Day. Unless otherwise indicated in the Annexes, for any switch application received by the Transfer Agent by the In accordance with applicable laws and regulations (in- cut-off time specified for each Compartment in the An- cluding but not limited to MiFID) a commission paid to nexes at the latest, the redemption price and issue price financial intermediaries and/or distributors may be de- applicable to a switch request will be those calculated ducted from this amount, representing up to 3% of the as at the relevant Valuation Day on the applicable Calcu- net asset value per Share. lation Day.

Back-end load for intermediaries will vary according to The Board of Directors may impose such restrictions as the Class of Share, as described in the “classes of it deems necessary, in particular concerning the fre- Shares” section. quency of switches, and will be authorised to apply corrections to the net asset value as described in the sec- The redemption price will also be reduced to cover any tion “Swing pricing mechanism / Spread”. duties, taxes and stamp duties to be paid. Shares that have been switched into Shares of another The Board of Directors will be authorised to apply cor- Compartment will be cancelled. rections to the net asset value as described in the section “Swing pricing mechanism / Spread”. In certain exceptional circumstances, the Board of Di- rectors will also be authorised to apply a dilution levy on Shares that have been redeemed will be cancelled. the switch of Shares, as described below in the section “Dilution Levy”. In certain exceptional circumstances, the Board of Di- rectors will also be authorised to apply a “Dilution Levy” DEFERRAL OF REDEMPTION AND SWITCH REQUESTS on the redemption of Shares, as described below in the If, following redemption or switch requests, it is neces- section “Dilution Levy”. sary as at a given Valuation Day to redeem more than 10% of the Shares issued for a given Compartment, the The redemption price may be higher or lower than the Board of Directors may decide that all redemption and subscription price, depending on changes in the net as- switch requests in excess of this 10% threshold be de- set value. ferred until the next Valuation Day as at which the redemption price is calculated for the Compartment in SWITCH question. On that next Valuation Day, redemption or Subject to meeting the access conditions of a particular switch applications that have been deferred (and not Class of Shares and any other restriction disclosed in withdrawn) will have priority over applications received the Annexes to the Prospectus, Shareholders of one for that particular Valuation Day (which have not been Compartment may ask for some or all of their Shares to deferred). be switched into Shares of the same Class of Shares of another Compartment or between Compartments for dif- COMPULSORY REDEMPTION OF SHARES ferent Class(es), in which case the switch price will be The Fund reserves the right to redeem Shares acquired calculated according to the respective net asset values, in breach of an exclusion measure, at any time in ac- which may be increased or reduced, in addition to ad- cordance with the provisions of the Articles of Associa- ministrative charges, by the commissions to intermediar- tion. ies for the Classes and/or Compartments in question. Under no circumstances may these intermediaries’ fees In addition, if it appears that a Shareholder in a Class of exceed 2%. Shares reserved for Institutional Investors is not such an Institutional Investor or if a Shareholder does not com- In case of a switch in the same Class of another Com- ply (any longer) with any other limitations applicable to partment, no other charge than an administrative fee a given Class of Shares, the Board of Directors may ei- may be levied. ther redeem the Shares in question using the forced

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redemption procedure described in the Articles of Asso- As the guarantor of the equal treatment of all investors, ciation, or concerning the Class of Shares reserved for the Board of Directors will take appropriate measures to Institutional Investor, convert these Shares into Shares ensure that (i) the Fund’s exposure to market timing in a Class of Shares that is not reserved for Institutional practices is measured in an appropriate, continuous way Investors (on the condition that there is a Class of and (ii) appropriate procedures and checks are in place Shares with similar characteristics, but for the avoid- to minimise the risk of market timing within the Fund. ance of doubt, not necessarily in terms of fees and expenses payable by such Class of Shares), or for the other CALCULATION OF THE NET ASSET VALUE categories of Classes of Shares convert these Shares in a The Central Administration Agent calculates the net as- Class of Shares available to him/her/it. set value for Shares for each Class of Shares in the currency of the Class of Shares in question, as at each Val- In these cases, the Board of Directors will notify the rel- uation Day. evant Shareholder of this contemplated conversion and the Shareholder concerned will receive a prior notice so The net asset value as at a Valuation Day shall be calcu- as to be able to satisfy the applicable limitation. lated on the Calculation Day.

SETTLEMENTS The net asset value of a Share of each Compartment will Issue prices and redemption prices must be paid within be calculated by dividing the net assets of the Compart- the delay specified for each Compartment in the An- ment in question by the Compartment’s total number of nexes. Shares in circulation. A Compartment’s net assets correspond to the difference between its total assets and to- If, on the settlement, banks are not open for business, tal liabilities. or an interbank settlement system is not operational, in the country of the currency of the relevant Compartment If various Classes of Shares are issued in a given Com- or Class of Shares, then settlement will be on the next partment, the net asset value of each Class of Shares in Week Day on which those banks and settlement systems this Compartment will be calculated by dividing the to- are open. tal net asset value (calculated for the Compartment in question and attributable to this Class of Shares) by the MARKET TIMING AND LATE TRADING total number of Shares issued for this Class of Shares. The Fund, the Management Company, the Registrar and the Transfer Agent will ensure that late trading and mar- The percentage of the total net asset value of the rele- ket timing practices are prevented in connection with vant Compartment that can be attributed to each Class the distribution of Shares. The cut-off times for submis- of Shares, which was initially identical to the percentage sion of the orders described in the Annexes to the Pro- of the number of Shares represented by the Class of spectus are strictly respected. Orders are accepted on the condition that the transactions do not affect the in- Shares in question, varies according to the level of dis- terests of other Shareholders. Investors are unaware of tribution Shares, as follows: the net asset value per Share at the time they submit a request for subscription, redemption or switch. Sub- a. if a dividend or any other distribution is paid out scriptions, redemptions and switches are authorised for for distribution Shares, the total net assets at- investment purposes only. The Fund and the Manage- tributable to the Class of Shares will be reduced ment Company prohibit market timing and other abusive by the amount of this distribution (thereby re- practices. The repeated purchase and sale of Shares in ducing the percentage of the total net assets of order to exploit imperfections or deficiencies in the sys- the Compartment in question, attributable to tem used to calculate the Fund’s net asset value, a the distribution Shares) and the total net assets practice also known as market timing, may disrupt the attributable to accumulation Shares will remain portfolio’s investment strategies, lead to an increase in identical (thereby increasing the percentage of costs borne by the Fund, and thus prejudice the inter- the Compartment’s total net assets attributable ests of the Fund’s long-term Shareholders. In order to to the accumulation Shares); discourage this practice, in the event of reasonable doubt, and whenever it suspects an investment similar b. if the capital of the Compartment in question is to market timing occurs, the Board of Directors reserves increased through the issue of new Shares in the right to suspend, cancel or refuse all subscription or one of the classes, the total net assets attributa- switch orders submitted by those investors making ble to the Class of Shares concerned will be in- proven frequent purchases and sales within the Fund. creased by the amount received for this issue;

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c. if the Shares of a class of Shares are redeemed by a given Compartment, the total net assets at- e. Securities expressed in a currency other than tributable to the corresponding Class of Shares that of the reference Compartment will be con- will be reduced by the price paid for the re- verted to the currency of that Compartment at demption of these Shares; the applicable exchange rate.

d. if the Shares of a Class of Shares are switched f. Units/shares issued by open-ended-type under- into Shares of another Class of Shares, the total takings for collective investment: net assets attributable to this Class of Shares will be reduced by the net asset value of the › on the basis of the last net asset value known Shares switched while the total net assets at- by the Central Administration Agent, or tributable to the Class of Shares in question will be increased by the same amount. › on the basis of the net asset value estimated on the closest date to the relevant Compart The total net assets of the Fund will be expressed in eu- ent’s Valuation Day. ros and correspond to the difference between the total assets (total wealth) and the total liabilities of the Fund. g. The value of companies that are not admitted

for listing on an official or regulated market For the purposes of this calculation, if the net assets of may be determined using a valuation method a Compartment are not expressed in euros, they will be proposed in good faith by the Board of Directors converted to euros and added together. based on the last audited annual financial

statements available, and/or on the basis of re- The assets of each Compartment will be valued as fol- cent events that may have an impact on the lows: value of the security in question and/or on any

other available valuation. The choice of method The securities admitted for listing on an official a. and of the medium allowing the valuation will stock exchange or on another regulated market depend on the estimated relevance of the avail- will be valued using the last known price unless able data. The value may be corrected accord- this price is not representative. ing to any unaudited periodic financial statements available. If the Board of Directors b. Securities not admitted to such listing or not on deems that the price is not representative of a regulated market and securities thus listed the probable selling value of such a security, it but whose last known price is not representa- will then estimate the value prudently and in tive, will be valued at their fair value estimated good faith on the basis of the probable selling prudently and in good faith. The Board of Direc- price. tors may set specific thresholds that, where ex- h. The value of forward contracts (futures and for- ceeded, will trigger an adjustment to the value wards) and option contracts traded on a regu- of these securities to their fair value. lated market or a securities exchange will be based on the closing or settlement prices pub- c. The value of any cash in hand or on deposit, lished by the regulated market or securities ex- bills and demand notes and accounts receiva- change that as a general rule constitutes the ble, prepaid expenses, dividends and interest principal place for trading those contracts. If a declared or accrued and not yet obtained, will forward contract or option contract cannot be be constituted by the nominal value of the as- liquidated on the valuation date of the net assets, unless it appears unlikely that this amount sets in question, the criteria for determining the will be obtained, in which case the value will be liquidation value of the forward or option con- determined after deducting the amount that the tract will be set by the Board of Directors in a Board of Directors deems appropriate to reflect reasonable and equitable manner. Forward con- the true value of these assets. tracts and option contracts that are not traded on a regulated market or on a securities ex- d. Money market instruments will be valued using change will be valued at their liquidation value the amortised cost method at their nominal determined in accordance with the rules estab- value plus any accrued interest or the “mark-to- lished in good faith by the Board of Directors market” method. When the market value is dif- and according to standard criteria for each type ferent to the amortised cost, the money market of contract. instruments will be valued using the mark-to- market method.

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i. The expected future flows, to be received and In case of a partial swing, the net asset value of the rel- paid by the Compartment pursuant to swap evant Compartment will be adjusted if on a specific Val- contracts, will be valued at their updated valuation Day the capital activity for that Compartment re- ues. sults in a net increase or decrease of cash flow exceed- j. When it deems necessary, the Board of Direc- ing a predetermined threshold (known as swing thresh- tors may establish a valuation committee whose old) expressed as a percentage of the net asset value of task will be to estimate prudently and in good the relevant Compartment. The swing threshold is deter- faith the value of certain securities. mined by the operational committee of the Management Company (the “Operational Committee”) in accordance In circumstances where the interests of the Fund and/or with the Management Company’ swing pricing mecha- its Shareholders so justify (including but not limited to nism policy. avoidance of market timing practices or where the determination of the values on the basis of the criteria speci- The adjustment, known as the swing factor, can reflect fied above is not possible or inadequate), the Board of the estimated fiscal charges and dealing costs that may Directors is authorised to adopt any other appropriate be incurred by the Compartment and/or the estimated principles to calculate the fair value of the assets of the bid/offer spread of the assets in which the Compartment relevant Compartment. invests. The swing factor is determined by the Opera- tional Committee in accordance with the Management If there is no bad faith or obvious error, the valuation Company’ swing pricing mechanism policy. Unless oth- determined by the Central Administration Agent will be erwise specified in the Annexes, the adjustment will not considered as final and will be binding on the Compart- exceed 2% of the net asset value of the relevant Com- ment and/or Class of Shares and its Shareholders. partment. The net asset value of the relevant Compart- ment will be adjusted upward or downward using the swing factor depending on the net capital activity of the SWING PRICING MECHANISM / SPREAD relevant Valuation Day. Portfolio transactions triggered by subscriptions and redemptions (subscriptions and redemptions being re- The swing pricing mechanism is applied by the Central ferred hereinafter as “capital activity”) are liable to gen- Administration Agent under the supervision of the Man- erate expenses as well as a difference between the trad- agement Company. ing price and the valuation of investments or divest- ments. To protect existing or remaining Shareholders in Swing pricing mechanism is applied at the level of a Com- a Compartment against this adverse effect, called "dilu- partment (not at the Share Class level) and does not ad- tion", investors entering into that Compartment or dress the specific circumstances of each individual inves- Shareholders exiting it may have to bear the cost of tor transaction. The swing pricing mechanism is not de- these negative effects. These costs (estimated at a flat signed to provide a full protection of Shareholders against rate or effective value) may be invoiced separately or dilution. charged by adjusting the net asset value of the relevant Compartment either down or up (swing pricing mecha- The swing pricing mechanism may be applied for all the nism). Compartments with the exception of certain Share Clas- ses of the Index Compartments (i.e. Pictet – USA Index, In order to protect Shareholders, the Management Com- Pictet – Europe Index, Pictet – Japan Index, Pictet – Pa- pany has established and implemented a swing pricing cific Ex Japan Index, Pictet – Emerging Markets Index, mechanism policy governing the application of the swing Pictet – Euroland Index, Pictet – China Index, Pictet – pricing mechanism. This policy will be reviewed and re- India Index and Pictet – Russia Index). vised as and when necessary but at least on an annual basis. For “I”, “J”, “P” and “Z” Shares of the Index Compart- ments, the abovementioned costs will be invoiced sepa- The Management Company may decide to apply either rately and the net asset value per Share of those Share (i) a full swing or (ii) a partial swing. Classes will not be adjusted.

In case of a full swing, the net asset value of the rele- For the “IS” “JS”, D1, “A” and “R” Shares of the Index vant Compartment will be adjusted each time there is Compartments, the swing pricing mechanism will apply. capital activity, regardless of its size or importance to the relevant Compartment. These procedures apply in an equitable manner to all Shareholders of a same Compartment on the same Valu- ation Day.

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Any applicable performance fee will be charged based on a. When one or more stock exchanges or markets the unswung net asset value of the relevant Compart- on which a significant percentage of the Fund’s ment. assets are valued or one or more foreign exchange markets in the currencies in which the The Board may decide to increase the maximum adjust- net asset value of Shares is expressed or in ment limit (invoiced separately or charged by adjusting which a substantial portion of the Fund’s assets the net asset value) stated in the Prospectus in excep- is held, are closed, other than for normal holi- tional circumstances and on a temporary basis, to pro- days or if dealings on them are suspended, re- tect Shareholders’ interests. stricted or subject to major fluctuations in the short term. DILUTION LEVY b. When, as a result of political, economic, mili- In certain exceptional circumstances such as, for exam- tary, monetary or social events, strikes or any ple: other cases of force majeure outside the responsibility and control of the Fund, the dis- › significant trading volumes, and/or posal of the Fund’s assets is not reasonably or normally practicable without being seriously › market disturbances, and detrimental to Shareholders’ interests. c. When there is a breakdown in the normal › in any other cases when the Board of Direc- means of communication used to calculate the tors deems, at its sole discretion, that the inter- value of an asset in the Fund or if, for whatever est of the existing Shareholders (concerning is- reason, the value of an asset in the Fund can- sues/switches) or of the remaining Shareholders not be calculated as promptly or as accurately (concerning redemptions/switches) might be as required. negatively affected, d. When, as a result of currency restrictions or restrictions on the movement of capital, transac- the Board of Directors will be authorised to charge a ditions for the Fund are rendered impracticable, lution levy for a maximum of 2% of the value of the net or purchases or sales of the Fund’s assets can- asset value on the issue, redemption and/or switch not be carried out at normal rates of exchange. price. e. In the event of the publication (i) of a notice of a general meeting of Shareholders at which the In cases when it is charged, this dilution levy will equi- dissolution and the liquidation of the Fund or of tably apply, as at a given Valuation Day, to all investors a Class of Shares or of a Compartment are pro- of the relevant Compartment having sent a subscription posed or (ii) of a notice informing the Share- /redemption or switch request. It will be paid to the holders of the Board of Directors’ decision to Compartment and will become an integral part of the as- liquidate one or more Compartment(s) and/or sets of that Compartment. Classes of Shares, or, to the extent that such a The dilution levy thus applied will be calculated with suspension is justified by the need to protect reference in particular to market effects as well as to the Shareholders, (iii) of a notice of a general meet- dealing costs incurred for transactions on the underlying ing of Shareholders called to decide on the investments for the Compartment, including any appli- merger of the Fund or of one or more Compart- cable commissions, spreads and transfer taxes. ment(s) or the split/consolidation of one or more Classes of Shares; or (iv) of a notice in- The dilution levy may be cumulative with the corrections forming the Shareholders of the Board of Direc- to the net asset value as described in the section tors’ decision to merge one or more Compart- “Swing Pricing Mechanism/ Spread” above. ments or to split/consolidate one or more Clas- ses of Shares. SUSPENSION OF NET ASSET VALUE CALCULATION, f. When for any other reason, the value of the assets or of the debts and liabilities attributable SUBSCRIPTIONS, REDEMPTIONS AND SWITCHES respectively to the Fund or to the Compartment

in question cannot be quickly or accurately de- The Fund may suspend the calculation of the net asset termined. value of Shares in any Compartment or, if the context so During any period when the determination of requires, of a Class of Shares, and the issue and re- g. the net asset value per share of investment demption of Shares in this Compartment (or Class of funds representing a material part of the assets Shares), as well as conversion from and into these of the relevant Class of Shares is suspended. Shares in the following cases:

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h. For any other circumstance in which failure to encourage risk-taking which is inconsistent with the risk suspend could result, either for the Fund, one profiles of the Fund or with its Articles of Association of its Compartments, Classes of Shares or its and which do not interfere with the obligation of the Shareholders, in certain liabilities, financial disadvantages or any other harm for the Fund Management Company to act in the best interests of the that the Compartment, Class of Shares or its Fund. Shareholders would not otherwise experience. The Management Company remuneration policy, proce-

dures and practices are designed to be consistent and For Compartments which invest their assets through a company wholly-controlled by the Fund, only the under- promote sound and effective risk management. It is de- lying investments will be taken into account for the im- signed to be consistent with the Management Com- plementation of the above restrictions and the interme- pany’s business strategy, values and integrity, and long- diary company will be treated as though it did not exist. term interests of its clients, as well as those of the wider

Pictet Group. The Management Company remuneration In such cases, Shareholders who have submitted applications to subscribe to, redeem or switch Shares in policy, procedures and practices also (i) include an as- Compartments affected by the suspension measures will sessment of performance set in a multi-year framework be notified. appropriate to the holding period recommended to the MANAGEMENT AND ADMINISTRATION STRUCTURE investors of the Fund in order to ensure that the assess- The Board of Directors ment process is based on the longer-term performance The Board of Directors is responsible for administering of the Fund and its investment risks and (ii) appropri- and managing the Fund and running its operations, as ately balance fixed and variable components of total re- well as deciding on and implementing its investment muneration. policy. The details of the up-to-date remuneration policy of the As allowed in the 2010 Act, the Board of Directors has Management Company, including, but not limited to, a designated a management company. description of how remuneration and benefits are calcu- The Management Company lated, individuals responsible for awarding the remuner- Pictet Asset Management (Europe) S.A., a société ation and benefits, including, as the case may be, the anonyme (“limited company”) with registered office lo- composition of the remuneration committee, are availa- cated at 15 Avenue J.F. Kennedy, Luxembourg, has ble at https://www.am.pictet/en/luxembourg/global-arti- been designated as the Management Company of the cles/ucits-remuneration-disclosure..A paper copy is Fund, as defined in Chapter 15 of the 2010 Act. made available free of charge upon request at the Man- agement Company’s registered office. Pictet Asset Management (Europe) S.A. was created on 14 June 1995 for an unlimited period, under the name Management Activity of Pictet Balanced Fund Management (Luxembourg) The objective of the Management Company is to manage S.A. as a société anonyme (“limited company”) gov- undertakings for collective investment in compliance erned by the laws of the Grand Duchy of Luxembourg. with the UCITS Directive. This management activity in- Its capital at the date of the Prospectus is cludes the management, administration and marketing CHF 11,332,000. of undertakings for collective investment such as the Fund. Remuneration Policy The Management Company has established remunera- A list of funds managed by the Management Company is tion policies for those categories of staff, including sen- available at the registered office of the Management ior management, risk takers, control functions, and any Company. employees receiving total remuneration that takes them The Management Company has primarily delegated the into the same remuneration bracket as senior manage- management of the Compartments to the companies ment and risk takers whose professional activities have a listed hereafter. This delegation is made according to material impact on the risk profile of the Management the provisions of the 2010 Act and the terms of the con- Company or the Fund, that are consistent with and pro- tracts entered into for an indefinite period that may be mote a sound and effective risk management and do not

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cancelled by either party at any time with 3 or 6 PICTET AM HK is a Hong Kong-licensed company sub- months’ notice depending on the terms in the contract. ject to the oversight of the Hong Kong Securities and Futures Commission and authorised by the latter to con- Subject to prior approval by the Management Company, duct type 1 (dealing in securities), type 2 (dealing in fu- the managers may appoint one or more sub-managers, tures contracts), type 4 (advising on securities) and type which may or may not be part of the Pictet Group, to 9 (asset management) regulated activities as at the date provide all or part of the management of certain Com- of the Prospectus. The company’s principal fund man- partments. When sub-managers are appointed, this will agement activities relate to Asian and particularly Chi- be specified in the Annexes to the Prospectus. nese equity and debt funds. The distribution of the in- For the purposes of the Prospectus, any reference to the vestment funds of the Pictet Group also forms part of its “manager” should be interpreted, when appropriate, as activities. also referring to the sub-manager(s). › Pictet Asset Management S.A., Geneva (“PIC- › Pictet Asset Management (Europe) SA, Italian TET AM S.A.”) Branch (“PICTET AME- Italy”) PICTET AM S.A. is a Swiss based fund distributor and PICTET AME Italy is supervised by Bank of Italy and investment manager that carries out asset management CONSOB in Italy (Commissione per il controllo delle So- activities for an international client base, mainly focus- cietà e delle Borse) and is responsible for balanced port- sing on equity, fixed income, quantitative and total re- folio management for international clients. turn asset classes, together with the execution of trades › Pictet Alternative Advisors SA (“PICTET AA for other PICTET AM group entities. PICTET AM S.A. is SA”) regulated by the Swiss Financial Market Supervisory Au- Pictet AA SA is a Geneva licensed company subject to thority (FINMA) in Switzerland. the oversight of FINMA and authorised by the latter to operate as an asset manager of collective investment › Pictet Asset Management Limited (“PICTET schemes. AM Ltd”) PICTET AM Ltd is a UK registered company that carries › Crescent Capital Group LP (“Crescent”) out asset management activities for an international cli- Registered with the SEC and based in Los Angeles, ent base, mainly focussing on equity and fixed income Crescent Capital Group, founded in 1991, offers invest- asset classes, together with the execution of trades for ment management services. It is an independent com- other PICTET AM group entities. PICTET AM Ltd is reg- pany which is majority-owned by its two founding part- ulated for business in the UK by the Financial Conduct ners and employees. Crescent Capital Group principally Authority (FCA). PICTET AM Ltd is also approved by the invests in below investment grade debt securities at all CSRC as a QFII and a RQFII. levels of a company's capital structure, mainly focusing on segregated portfolio management for institutional cli- › Pictet Asset Management (Singapore) Pte. Ltd. ents. (“PICTET AMS”) PICTET AMS is a private limited company created in The managers may enter into soft commission agree- Singapore which is regulated by the Monetary Authority ments, only when these agreements bring a direct and of Singapore. The activities of PICTET AMS are portfolio identifiable advantage to their clients, including the Fund, and when the managers are convinced that the management focussing primarily on sovereign and cor- transactions giving rise to the soft commissions will be porate fixed income and the execution of orders on conducted in good faith, in strict compliance with the ap- Asian fixed income products initiated by other entities plicable regulatory provisions and in the best interests of of the PICTET AM group entities. the Fund. The Managers may enter into such agreements › Pictet Asset Management (Hong Kong) Limited to the extent permitted by and on terms and conditions (“PICTET AM HK”) compliant with best market practice and applicable laws and regulations. Supervision of the delegated management activities is

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solely the responsibility of the Management Company. Pictet & Cie (Europe) S.A. is a credit institution established in Luxembourg, whose registered office is situ- Central Administration The function of central administration agent of the Fund ated at 15A, Avenue J.F. Kennedy, L-1855 Luxem- is delegated to the Central Administration Agent. bourg, and which is registered with the Luxembourg register of commerce and companies under number The Central Administration Agent has been designated B32060. It is licensed to carry out banking activities as transfer agent and registrar, administrative agent and under the terms of the Luxembourg law of 5 April 1993 paying agent, under the terms of agreements concluded on the financial services sector, as amended. for an indefinite period. On behalf of and in the interests of the Shareholders, as The Central Administration Agent is a société anonyme Depositary Bank, Pictet & Cie (Europe) S.A. is in charge (public limited company) that has its registered office at of (i) the safekeeping of cash and securities comprising 15 Avenue J. F. Kennedy, Luxembourg. It is a manage- the Fund’s assets, (ii) the cash monitoring, (iii) the over- ment company within the meaning of Chapter 15 of the sight functions and (iv) such other services as agreed 2010 Act. from time to time and reflected in the Depositary Agree- FundPartner Solutions (Europe) S.A. is wholly owned by ment. the Pictet Group and was incorporated in Luxembourg Duties of the Depositary Bank for an unlimited period on 17 July 2008. As registrar and transfer agent, the Central Administration Agent is The Depositary Bank is entrusted with the safekeeping primarily responsible for the issue, switch and redemp- of the Fund's assets. For the financial instruments tion of Shares and for maintaining the Company’s regis- which can be held in custody, they may be held either ter of Shareholders. directly by the Depositary Bank or, to the extent permitted by applicable laws and regulations, through every As administrative agent and paying agent, the Central third-party custodian/sub-custodian providing, in princi- Administration Agent is responsible for calculating and ple, the same guarantees as the Depositary Bank itself, publishing the net asset value of the Shares of each i.e. for Luxembourg institutions to be a credit institution Compartment pursuant to the Luxembourg law and the within the meaning of the Luxembourg law of 5 April Articles of Association, and for performing administra- 1993 on the financial sector as amended or for foreign tive and accounting services for the Fund as necessary. institutions, to be a financial institution subject to the Distribution rules of prudential supervision considered as equivalent Shares will be distributed by the Distributor. to those provided by EU legislation. The Depositary Bank also ensures that the Fund's cash flows are The Distributor may enter into distribution agreements properly monitored, and in particular that the subscrip- with any professional agent, particularly banks, insur- tion monies have been received and all cash of the Fund ance companies, “internet supermarkets”, independent has been booked in the cash account in the name of (i) managers, brokers, management companies or any other the Fund, (ii) the Management Company on behalf of institution whose primary or secondary activity is the the Fund or (iii) the Depositary Bank on behalf of the distribution of investment funds and customer service. Fund. Investment Advisers The Depositary Bank must notably: The Management Company and the Managers may at their own risk and cost appoint one or more investment – perform all operations concerning the day-to-day adviser(s) to advise them on the management of one or administration of the Fund’s securities and liquid more Compartment(s). assets, e.g. pay for securities acquired against delivery, deliver securities sold against collection of The Depositary Bank their price, collect dividends and coupons and ex- Pictet & Cie (Europe) S.A. has been designated as the ercise subscription and allocation rights; Depositary Bank for the Fund pursuant to the Depositary Agreement entered into for an indefinite period. – ensure that the value of the Shares is calculated in accordance with Luxembourg laws and the Articles

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of Association; In case of a loss of a financial instrument held in custody, the Depositary Bank shall return a financial instru- – carry out the instructions of the Fund, unless they ment of an identical type or the corresponding amount conflict with Luxembourg laws or the Articles of As- to the Fund without undue delay, except if such loss re- sociation; sults from an external event beyond the Depositary – ensure that proceeds are remitted within the usual Bank's reasonable control and the consequences of time limits for transactions relating to the Fund’s which would have been unavoidable despite all reasona- assets; ble efforts to the contrary.

– ensure that Shares are sold, issued, redeemed or An up-to-date list of the appointed third-party delegates cancelled by the Fund or on its behalf in accord- is available upon request at the registered office of the ance with Luxembourg laws in force and the Arti- Depositary Bank and is available on the website of the cles of Association; Depositary Bank:

– ensure that the Fund’s income is allocated in ac- https://www.group.pictet/asset-services/custody/safe- cordance with Luxembourg laws and the Articles of keeping-delegates-sub-custodians Association. Conflicts of interests: The Depositary Bank regularly provides the Fund and its Management Company with a complete inventory of all In carrying out its functions, the Depositary Bank shall assets of the Fund. act honestly, fairly, professionally, independently and solely in the interest of the Fund and the Shareholders. Delegation of functions: Potential conflicts of interest may nevertheless arise Pursuant to the provisions of the Depositary Agreement, from time to time from the provision by the Depositary the Depositary Bank may, subject to certain conditions Bank and/or its delegates of other services to the Fund, and in order to more efficiently conduct its duties, dele- the Management Company and/or other parties. As indi- gate part or all of its safekeeping duties over the Fund's cated above, Depositary Bank’s affiliates are also ap- assets including but not limited to holding assets in cus- pointed as third-party delegates of the Depositary Bank. tody or, where assets are of such a nature that they can- Potential conflicts of interest which have been identified not be held in custody, verification of the ownership of between the Depositary Bank and its delegates are those assets as well as record-keeping for those assets, mainly fraud (unreported irregularities to the competent to one or more third-party delegates appointed by the authorities to avoid bad reputation), legal recourse risk Depositary Bank from time to time. The Depositary Bank (reluctance or avoidance to take legal steps against the shall exercise care and diligence in choosing and ap- depositary), selection bias (the choice of the depositary pointing the third-party delegates so as to ensure that not based on quality and price), insolvency risk (lower each third-party delegate has and maintains the re- standards in asset segregation or attention to the depos- quired expertise and competence. The Depositary Bank itary's solvency) or single group exposure risk (intragroup shall also periodically assess whether the third-party del- investments). egates fulfil applicable legal and regulatory requirements and will exercise ongoing supervision over each The Depositary Bank (or any of its delegates) may in the third-party delegate to ensure that the obligations of the course of its business have conflicts or potential con- third-party delegates continue to be competently dis- flicts of interest with those of the Fund and/or other charged. The fees of any third-party delegate appointed funds for which the Depositary Bank (or any of its dele- by the Depositary Bank shall be paid by the Fund. gates) acts.

The liability of the Depositary Bank shall not be affected The Depositary Bank has pre-defined all kind of situa- by the fact that it has entrusted all or some of the tions which could potentially lead to a conflict of inter- Fund's assets in its safekeeping to such third-party dele- est and has accordingly carried out a screening exercise gates. on all activities provided to the Fund either by the De- positary Bank itself or by its delegates. Such exercise

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resulted in the identification of potential conflicts of in- Depositary Bank’s duties and of conflicts of interest that terest that are however adequately managed. The details may arise as well as of any safekeeping functions dele- of potential conflicts of interest listed above are availa- gated by the Depositary Bank and any conflicts of inter- ble free of charge from the registered office of the De- est that may arise from such a delegation will be made positary Bank and on the following website: available to investors on request at the Fund's registered office. https://www.group.pictet/asset-services/custody/safekeeping-delegates-sub-custodians The Depositary Bank is remunerated in accordance with customary practice in the Luxembourg financial market. On a regular basis, the Depositary Bank re-assesses Such remuneration is expressed as a percentage of the those services and delegations to and from delegates Fund’s net assets and paid on a quarterly basis. with which conflicts of interest may arise and will up- date such list accordingly. Statutory Auditor These duties have been assigned to Deloitte Audit Where a conflict or potential conflict of interest arises, S.à r.l., 20, Boulevard de Kockelscheuer L-1821 Lux- the Depositary Bank will have regard to its obligations to embourg. the Fund and will treat the Fund and the other funds for which it acts fairly and such that, so far as is practica- SHAREHOLDER RIGHTS AND INFORMATION ble, any transactions are effected on terms which shall Shares be based on objective pre-defined criteria and meet the The Shares of each Class of Shares are in principle sole interest of the Fund and the Shareholders. Such issued in registered form without any par value and potential conflicts of interest are identified, managed fully paid up. and monitored in various other ways including, without Fractions of Shares may be issued up to a maximum of limitation, the hierarchical and functional separation of five decimal places. They are recorded in a Shareholder Depositary Bank’s depositary functions from its other register, kept at the Fund’s registered office. Shares re- potentially conflicting tasks and by the Depositary Bank deemed by the Fund will be cancelled. adhering to its own conflicts of interest policy. All Shares are freely transferable and entitle holders to The Depositary Bank or the Fund may terminate the De- an equal proportion in any profits, liquidation proceeds positary Agreement at any time, by giving at least three and dividends for the Compartment in question. months’ written notice to the other party; provided, however, that any decision by the Fund to end the Deposi- Each Share is entitled to a single vote. Shareholders will also be entitled to the general Shareholders’ rights pro- tary’s appointment is subject to another custodian bank vided for under the 1915 Law, as amended, with the ex- taking on the duties and responsibilities of the Deposi- ception of the pre-emptive right to subscribe for new tary Bank and provided further that, if the Fund termi- Shares. nates the Depositary’s duties, the Depositary Bank will continue to perform its duties until Depositary Bank has To the extent permitted by law, the Board of Directors been relieved of all the Fund’s assets that it held or had may suspend the right to vote of any Shareholder which arranged to be held on behalf of the Fund. Should the does not fulfil its obligations under the Articles of Asso- Depositary Bank itself give notice to terminate the De- ciation or any document (including any applications positary Agreement, the Fund will be required to appoint forms) stating its obligations towards the Fund and/or a new depository bank to take over the duties and re- the other Shareholders. Any Shareholder may undertake sponsibilities of the Depositary Bank, provided, however, (personally) to not exercise his voting rights on all or that, as of the date when the notice of termination ex- part of his Shares, temporarily or indefinitely. pires and until a new depositary bank is appointed by the Fund, the Depositary Bank will only be required to Shareholders will only receive confirmation of their entry take any necessary measures to safeguard the best inter- in the register. ests of Shareholders. General Shareholders’ Meeting Up-to-date information regarding the description of the The Annual General Meeting is held every year on 3

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December at 10.00 am at the Fund’s registered office Key Investor Information Document or at any other location in Luxembourg, as specified on According to the 2010 Act, the KIID must be provided the invitation to attend the meeting. to investors in good time before their proposed subscription for Shares. If that day is not a Banking Day, the meeting will be held on the following Banking Day. Before investing, investors are invited to visit the Man- agement Company website www.assetmanagement.pic- If and to the extent allowed by Luxembourg laws and tet and download the relevant KIID prior to any applica- regulations, the Annual General Meeting may be held at tion. The same diligence is expected from the investor a date, time and place other than those described in the wishing to make additional subscriptions in the future since updated versions of the KIID will be published paragraph above. This other date, time and place will be from time to time. A hard copy can be supplied to inves- determined by the Board of Directors. tors on request and free of charge at the registered of- Notices of meetings will be sent to all registered Share- fice of the Fund. holders at least 8 days prior to the relevant meeting. The above shall apply mutatis mutandis in case of These notices will include details of the time and place switch. of the meeting, the agenda, conditions for admission and requirements concerning the quorum and majority Depending on applicable legal and regulatory require- as laid down by Luxembourg law. ments (comprising but not limited to MiFID) in the countries of distribution, Mandatory Additional Infor- All decisions by Shareholders regarding the Fund will be mation may be made available to investors under the re- taken at the general meeting of all Shareholders, pursu- sponsibility of local intermediaries / distributors. ant to the provisions of the Articles of Association and Periodic reports and publications Luxembourg law. All decisions that only concern the The Fund will publish audited annual reports within 4 Shareholders of one or more Compartments may be months of the end of the fiscal year and unaudited taken – as authorised by law – by the Shareholders of semi-annual reports within 2 months of the end of the the relevant Compartments. In this case, the quorum reference period. and majority requirements stipulated in the Articles of The annual report includes the financial statements for Association will apply. the Fund and each Compartment. In case the voting rights of one or more Shareholders are suspended, such Shareholders shall be convened and These reports will be made available to Shareholders at the Fund’s registered office and from the Depositary may attend the general meeting, but their Shares shall Bank and foreign agents involved in marketing the Fund not be taken into account for determining whether the abroad. quorum and majority requirements are satisfied. The net asset value per Share of each Compartment and Information for Shareholders the issue and redemption price are available from the The Fund draws investors' attention to the fact that they Depositary Bank and the foreign agents involved in mar- can only fully exercise their investor rights directly with keting the Fund abroad. respect to the Fund (in particular the right to participate in the general meetings of the Shareholders), when the Information to Shareholders relating to their investment in the Compartments may be sent to their attention investor himself appears, in his own name, in the Share- and/or published on the website www.assetmanage- holder register. In cases when an investor has invested ment.pictet. In case of material change and/or where re- in the Fund through an intermediary investing in the quired by the CSSF or by Luxembourg law, Shareholders Fund in his own name but on behalf of the investor, cer- will be informed via a notice sent to their attention or in tain rights attached to the Shareholder status cannot such other manner provided for by the applicable law. necessarily be directly exercised by the investor with re- Documents available for inspection spect to the Fund. Investors are advised to make inquir- The following documents are deposited at the registered ies about their rights. office of the Depositary Bank and of the Fund:

› the Articles of Association;

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› the latest annual report and the latest semi-an- charged to a Compartment’s Classes of Shares in pro- nual report if more recent than the former; portion to its net assets and are calculated on the aver- › the Management Company agreement between age of the net asset values of these Classes of Shares. the Fund and the Management Company; Transaction fees will also be charged at rates fixed by › the Depositary Agreement entered between the common agreement. Depositary Bank and the Fund. For details of the service, management and Depositary Bank fees, please refer to the Annexes. QUERIES AND COMPLAINTS The rate indicated in the Annexes for the Depositary Any person who would like to receive further information Bank fee does not include VAT. regarding the Fund including the strategy followed for the exercise of voting rights of the Fund, the active own- Other expenses ership policy, the conflict of interest policy, the best ex- Other costs charged to the Fund may include: ecution policy and the complaints resolution procedure 1. All taxes and duties that may be due on the or who wishes to make a complaint about the operations Fund’s assets or income earned by the Fund, in of the Fund should contact the Head of Compliance of particular the subscription tax the Management Company, i.e. Pictet Asset Manage- ment (Europe) S.A., 15, avenue J.F. Kennedy, L-1855 2. Fees and charges on transactions involving securities in the portfolio. Luxembourg, Grand Duchy of Luxembourg. The details of the active ownership policy is available at 3. Remuneration of the Depositary Bank’s corre- https://am.pictet/-/media/pam/pam-common-gallery/arti- spondents. cle-content/2019/expertise/esg/active-ownership-re- 4. Fees and expenses reasonably incurred by the port/active-ownership-policy.pdf, the complaints resolu- Domiciliation Agent, Transfer Agent, Adminis- tion procedure of the Management Company as well as trative Agent and Paying Agent. the details of the CSSF out-of-court complaint resolution 5. Remuneration of foreign agents appointed to procedure are available at https://www.assetmanage- market the Fund abroad. In addition, when the ment.pictet/en/luxembourg/global-articles/2017/pictet- Fund is distributed abroad, the laws and regula- asset-management/complaint-resolution-procedure tions in force in some jurisdictions may require the presence of a local paying agent. In this FUND EXPENSES case, investors domiciled in these jurisdictions Remuneration of the service providers may be required to bear the fees and commis- A service fee will be paid to the Management Company sions levied by the local paying agents. to remunerate it for the services provided to the Fund. 6. The cost of exceptional measures, particularly This fee will also enable the Management Company to expert appraisals or legal proceedings under- remunerate the Central Administration Agent for the taken to protect Shareholders’ interests. functions of transfer agent, administrative agent and 7. The cost of preparing, printing and filing ad- paying agent. ministrative documents, prospectuses and ex- The Management Company will also receive manage- planatory reports with the authorities, fees payment fees from the Compartments and, in some cases, able for the registration and maintenance of the performance fees, to remunerate the managers, sub- Fund with authorities and official stock exchanges, fees and expenses relating to invest- managers, investment advisers and distributors, if any, ment research, the cost of preparing, translat- in accordance with applicable laws and regulations (in- ing, printing and distributing periodic reports cluding but not limited to MiFID). and other documents required by law or regula- In payment for its custodial services, the Depositary tions, the cost of accounting and calculating the net asset value, the cost of preparing, dis- Bank will charge a fee for the deposit of assets and the tributing and publishing reports for Sharehold- safekeeping of securities. ers, fees for legal counsel, experts and inde- Service, management and depositary bank fees are pendent auditors, and any similar operating costs.

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8. Advertising costs and expenses, other than particular Compartment or particular Class of those specified above, relating directly to the Shares, that liability will be allocated to the offer or distribution of Shares will be charged to Compartment or Class of Shares in question. the Fund to the extent decided by the Board of d. Where a Fund’s asset or liability cannot be allo- Directors. cated to a particular Compartment, that asset or All recurring expenses will be charged first to the Fund’s liability will be allocated in equal shares to all income, then to realised capital gains, then to the Compartments or allocated in such a way as the Fund’s assets. All other expenses may be amortised over Board of Directors determines prudently and in good faith. a maximum of five years. e. The costs incurred for setting up a new Com- When calculating the net asset values of the various partment or restructuring will, where applicable, Compartments, expenses will be divided among the be allocated to the new Compartment and may Compartments in proportion to the net assets of these be amortised over a five-year period. Compartments, unless these expenses relate to a spe- TIME LIMITATION cific Compartment, in which case they will be allocated Claims of Shareholders against the Board of Directors, to that Compartment. the Depositary Bank or the Central Administration Agent Division into Compartments will lapse five years after the date of the event that gave For each Compartment, the Board of Directors will cre- rise to the rights claimed. ate a group of distinct assets, as described in or as per TAX STATUS the 2010 Act. The assets of a Compartment will not in- The Fund is subject to Luxembourg tax legislation. clude any liabilities of other Compartments. The Board of Directors may also create two or more Classes of The Fund Shares within each Compartment. The Fund is subject to Luxembourg tax legislation. Pur- chasers of Shares in the Fund are responsible for ensur- Proceeds from the issue of Shares of a particu- a. ing that they are informed of the applicable legislation lar Compartment will be booked under the Com- and regulations governing the acquisition, holding and partment in question in the Fund’s accounts and, if relevant, the corresponding amount will sale of Shares, with regard to their residence and na- accrue to the net assets of the Compartment in tionality. question, and the assets, liabilities, income and In accordance with the legislation in force in Luxem- expenses relating to this Compartment will be allocated to it in accordance with the provisions bourg, the Fund is not subject to any Luxembourg in- of this Article. If there are several Classes of come tax or capital gains tax, withheld at source or oth- Shares in such a Compartment, the correspond- erwise. Nevertheless, the net assets of the Fund are sub- ing amount will increase the proportion of the ject to tax at an annual rate of 0.05%, payable at the net assets of the Compartment in question and end of each quarter and calculated on the basis of the will be assigned to the Class of Shares con- Fund’s net assets at the end of each quarter. This tax cerned. will however be reduced to 0.01% for Classes of Shares b. If an asset is derived from another asset, this reserved to Shares reserved for Institutional Investors derivative asset will be allocated in the books of and for the Compartments whose sole objective is col- the Fund to the Compartment or Class of Shares lective investment in money market instruments and de- to which the asset from which it is derived be- posits in credit institutions. longs and, each time an asset is revalued, the increase or decrease in value will be allocated to Are exempt from the subscription tax Compartments: the corresponding Compartment or Class of Shares. a. whose Shares are listed or traded on at least one stock exchange or another regulated market, op- c. If the Fund is charged with a liability attributa- erating regularly, and recognised and open to ble to an asset from a particular Compartment the public; and or a specific Class of Shares or to an operation carried out in relation to the assets of a b. whose exclusive object is to replicate the performance of one or more indexes.

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If there are several Classes of Shares within the relevant exchanges information in accordance with a bilateral Compartment, the exemption//reduced rate is only appli- agreement on sharing tax information. In such event, cable to the Classes of Shares meeting the conditions the Luxembourg financial institutions send the infor- described above. mation about the financial accounts of asset holders to the Luxembourg tax authorities, which in turn automati- European tax considerations The OECD has developed a common reporting standard cally forward this information to the relevant foreign tax ("CRS") to achieve a comprehensive and multilateral au- authorities on an annual basis. As such, information tomatic exchange of information ("AEOI") on a global ba- concerning Shareholders may be provided to the Luxem- sis. On 9 December 2014, the Euro-CRS Directive was bourg tax authorities and other relevant tax authorities adopted in order to implement the CRS among the pursuant to the regulations in effect. Member States. Under the AEOI, the Fund is considered a financial in- The Euro-CRS Directive was implemented into Luxem- stitution. As a result, Shareholders and/or their control- bourg law by the CRS Law. The CRS Law requires Lux- ling persons are explicitly advised that they are or may embourg financial institutions to identify financial as- be the subject of disclosure to the Luxembourg tax au- sets holders and establish if they are fiscally resident in thorities and other relevant tax authorities, including countries with which Luxembourg has a tax information those of their country of residence. sharing agreement. Luxembourg financial institutions The Compartments do not admit, among their Share- will then report financial account information of the as- holders, investors who are considered under the AEOI as set holder to the Luxembourg tax authorities, which will (i) individuals or (ii) passive non-financial entities ("Pas- thereafter automatically transfer this information to the sive NFE"), including financial entities requalified as competent foreign tax authorities on a yearly basis. passive non-financial entities.

Accordingly, the Fund may require the Shareholders to However, the Fund reserves the right to accept on a case provide information in relation to the identity and fiscal by case basis and at its own discretion Passive NFE residence of financial account holders (including certain without any prejudice to other Shareholders. entities and their controlling persons) in order to ascer- The Fund reserves the right to refuse any application for tain their CRS status and report information regarding a Shares if the information provided or not provided does Shareholder and his/her/its account to the Luxembourg not satisfy the requirements under the CRS Law. tax authorities (Administration des Contributions Di- rectes), if such account is deemed a CRS reportable ac- The preceding provisions represent only a summary of count under the CRS Law. The Fund is responsible for the different implications of the Euro-CRS Directive and the treatment of the personal data provided for in the the CRS Law. They are based only on their current inter- CRS Law; (ii) the personal data will only be used for the pretation and are not intended to be exhaustive. These purposes of the CRS Law; (iii) the personal data may be provisions should not in any manner be considered as communicated to the Luxembourg tax authorities (Ad- tax or investment advice and investors should therefore ministration des Contributions Directes. seek advice from their financial or tax advisers on the In addition, Luxembourg signed the OECD’s multilateral implications of the Euro-CRS Directive and the CRS Law competent authority agreement ("Multilateral Agree- to which they may be subject. ment") to automatically exchange information under the Unless otherwise decided by the Management Company, CRS. The Multilateral Agreement aims to implement the no tax reporting for the “dm” and “ds” Class of Shares CRS among non-EU Member States; it requires agree- will be provided for German investors. ments on a country-by-country basis. FATCA Under these regulations Luxembourg financial institu- The FATCA, a portion of the 2010 Hiring Incentives to tions are required to establish the identity of the owners Restore Employment Act, became law in the United of financial assets and determine if they reside for tax States in 2010 aims at preventing US tax evasion by re- purposes in countries with which Luxembourg quiring foreign (non-US) financial institutions to report

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to the US Internal Revenue Service information on fi- a. request information or documentation, including nancial accounts held outside the United States by US W-8 tax forms, a Global Intermediary Identifica- investors. US securities held by a non-US financial insti- tion Number, if applicable, or any other valid tution that does not comply with the FATCA reporting re- evidence of a unit's FATCA registration with the gime will be subject to a US tax withholding of 30% on IRS or a corresponding exemption, in order to ascertain such Shareholder's FATCA status; gross sales proceeds and income, commencing on 1 July 2014. b. report information concerning a Shareholder and his account holding in the Fund to the Lux- On 28 March 2014, the Grand-Duchy of Luxembourg embourg tax authorities if such account is entered into a Model 1 Intergovernmental Agreement deemed a FATCA reportable account under the ("IGA") with the United States of America and a memo- FATCA Law and the Luxembourg IGA; randum of understanding in respect thereof. The Fund c. report information to the Luxembourg tax au- hence has to comply with such Luxembourg IGA as im- thorities (Administration des Contributions Di- plemented into Luxembourg law by the Law of 24 July rectes) concerning payments to Shareholders 2015 relating to FATCA (the "FATCA Law") in order to with FATCA status of a non-participating foreign comply with the provisions of FATCA rather than directly financial institution; complying with the US Treasury Regulations implement- d. deduct applicable US withholding taxes from ing FATCA. Under the FATCA Law and the Luxembourg certain payments made to a Shareholder by or IGA, the Fund may be required to collect information on behalf of the Fund in accordance with aiming to identify the direct and indirect Shareholders FATCA, the FATCA Law and the Luxembourg that are Specified US Persons for FATCA purposes IGA; and (“FATCA reportable accounts”). Any such information on e. divulge any such personal information to any FATCA reportable accounts provided to the Fund will be immediate payor of certain U.S. source income shared with the Luxembourg tax authorities which will as may be required for withholding and report- exchange that information on an automatic basis with ing to occur with respect to the payment of such the Government of the United States of America pursu- income. ant to Article 28 of the convention between the Govern- The Fund is responsible for the treatment of the per- ment of the United States of America and the Govern- sonal data provided for in the FATCA Law; (ii) the per- ment of the Grand-Duchy of Luxembourg for the avoid- sonal data will only be used for the purposes of the ance of Double Taxation and the Prevention of Fiscal FATCA Law; (iii) the personal data may be communi- Evasion with respect to Taxes in Income and Capital, cated to the Luxembourg tax authorities (Administration entered into in Luxembourg on 3 April 1996. The Fund des Contributions Directes). intends to comply with the provisions of the FATCA Law and the Luxembourg IGA to be deemed compliant with The Fund, which is considered to be foreign financial in- FATCA and will thus not be subject to the 30% with- stitution, will seek to obtain "deemed-compliant" status holding tax with respect to its share of any such pay- under the "collective investment vehicle" (CIV) exemp- ments attributable to actual and deemed U.S. invest- tion. ments of the Fund. The Fund will continually assess the In order to elect and keep such FATCA status, the Fund extent of the requirements that FATCA and notably the only allows as Shareholders (i) participating foreign fi- FATCA Law place upon it. nancial institutions, (ii) deemed-compliant foreign fi- Under the IGA, Luxembourg-resident financial institu- nancial institutions, (iii) non-reporting IGA foreign finan- tions that comply with the requirements of the Luxem- cial institutions, (iv) exempt beneficial owners (v), Ac- bourg IGA Legislation will be treated as FATCA-compli- tive Non-Financial Foreign Entities (“Active NFFE”) or ant and, as a result, will not be subject to withholding (vi) non-specified US persons, all as defined by the Fi- nal FATCA Regulation and any applicable IGA; accord- tax under FATCA (“FATCA Withholding”). ingly, investors may only subscribe for and hold Shares To ensure the Fund's compliance with FATCA, the through a financial institution that complies or is FATCA Law and the Luxembourg IGA in accordance with deemed to comply with FATCA. the foregoing, The Fund may:

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As an exception to the above, the Fund may on case by Failure to provide certain Data may result in the investor case basis and at its own discretion accept Passive not being able to invest or maintain an investment in the NFFE. Should it be the case, the concerned Compart- Fund. ment would need to elect for the “reporting fund” sta- Data will be processed by the Controllers and disclosed tus. to, and processed by, service providers of the Controller The Fund may impose measures and/or restrictions to such as the Depositary Bank, the Transfer Agent, the that effect, which may include the rejection of subscrip- Administrative Agent, the Paying Agent, the Auditor, the tion orders or the compulsory redemption of Shares, Manager, the Investment Adviser ( if any), the Distribu- and/or the FATCA Withholding from payments to the ac- tor and its appointed sub-distributors, legal and finan- count of any Shareholder found to qualify as a “recalci- cial advisers (the “Processors”) for the purposes of (i) trant account” or “non-participating foreign financial in- offering and managing investments and holdings of the stitution” under FATCA. Shareholders and performing the services related to their Shareholding in the Fund (ii) enabling the Proces- The attention of US taxpayers is also drawn to the fact sors to perform their services for the Fund, or (iii) com- that the Fund qualifies as a passive foreign investment plying with legal, regulatory and/or tax (including company (“PFIC”) under US tax laws and does not in- FATCA/CRS) obligations (the “Purposes”). tend to provide information that would allow such investors to elect to treat the Fund as a qualified electing As part of the Purposes, Data may also be processed for the purpose of direct marketing activities (by means of fund (so-called “QEF election”). electronic communication), notably for providing Data Prospective investors should (i) consult their own tax ad- Subjects with general or personalised information about visors regarding the impact of FATCA further to an in- investment opportunities, products and services pro- vestment in the Fund and (ii) be advised that although posed by or on behalf of the Fund, its service providers, the Fund will attempt to comply with all FATCA obliga- delegates and business partners. The legal basis for the tions, no assurance can be given that it will be able to processing of Data in the context of such marketing ac- satisfy such obligations and therefore to avoid FATCA tivities will be either the legitimate interests of the Fund withholding. (propose new investments opportunities to investors) or, in particular if required by law, the consent of the Data DATA PROTECTION Any information concerning investors who are natural Subjects for the relevant marketing activities. persons and other related natural persons (together the The Processors shall act as processors on behalf of the “Data Subjects”) which allows the Data Subjects to be Controllers and may also process Data as controllers for directly or indirectly identified (the “Data”), which is their own purposes. provided to, or collected by or on behalf of, the Fund Any communication (including telephone conversations) and the Management Company (directly from Data Sub- (i) may be recorded by the Controllers and the Proces- jects or from publicly available sources) will be pro- sors in compliance with all applicable legal or regulatory cessed by the Fund and the Management Company as obligations and (ii) will be retained for a period of 10 joint data controllers (the “Controllers” – which can be years from the date of the recording. contacted through the compliance officer of the Man- agement Company, 15, avenue J.F. Kennedy, L-1855 Data may be transferred outside of the European Union Luxembourg, Grand Duchy of Luxembourg) in compli- (the “EU”), to countries whose legislation does not en- ance with applicable data protection laws, in particular sure an adequate level of protection as regards the pro- Regulation (EU) 2016/679 of 27 April 2016. cessing of personal data.

A data protection officer has been appointed (the “DPO”) Investors providing the Data of third-party data subjects who can be contacted at: europe-data-protection@pic- to the Controllers need to ensure that they have ob- tet.com. tained the authority to provide that Data and are therefore required to inform the relevant third-party data subjects of the processing of the Data and their related rights. If necessary, investors are required to obtain the

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explicit consent of the relevant third-party data subject Merger of Compartments for such processing. The Board of Directors may decide to merge a Compart- ment with another Compartment or with another UCITS Data of Data Subjects will not be retained for longer (Luxembourg or foreign) in accordance with the 2010 than necessary with regard to the Purposes, in accordance with applicable laws and regulations, subject al- Act. ways to applicable legal minimum retention periods. The Board of Directors may also decide to submit the The investors have certain rights in relation to the Data decision to merge to the general meeting of the Share- relating to them, including the right to request access to holders of the Compartment concerned. Any decision of such Data, or have such Data rectified or deleted, the the Shareholders will not be subject to a quorum re- right to ask for the processing of such Data to be requirement and will be adopted by simple majority of the stricted or to object thereto, the right to portability, the votes cast. If, following a merger of one or more Com- right to lodge a complaint with the relevant data protec- partments, the Fund should cease to exist, the merger tion supervisory authority, or the right to withdraw any will be decided by a general meeting of Shareholders for consent after it was given. which no quorum is required, and the merger will be decided with a simple majority of the vote cast. Detailed information about how Data is processed is contained in the privacy notice available at Liquidation of Compartments https://www.group.pictet/privacynotice or on demand by The Board of Directors may also propose to dissolve a contacting the DPO (europe-data-protection@pic- Compartment and cancel its Shares at the general meet- tet.com). The privacy notice notably sets out in more de- ing of Shareholders of the Compartment. This general tail the data subjects’ rights described above, the nature meeting will deliberate without any quorum require- of the Data processed, the legal bases for processing, ment, and the decision to dissolve the Compartment will the recipients of the Data and the safeguards applicable be will be adopted by a majority of the votes cast at the for transfers of Data outside of the EU. meeting.

The investors’ attention is drawn to the fact that the If a Compartment’s total net assets fall below EUR data protection information is subject to change at the 15,000,000 or the equivalent in the reference currency sole discretion of the Controllers, and that they will be of the Compartment concerned, or if justified by a duly informed prior to the implementation of any change in the economic situation or political circum- change. stances affecting a Compartment or for economic ration- DURATION – MERGER – DISSOLUTION OF THE FUND alisation or if it is in the interests of the Shareholders, AND COMPARTMENTS the Board of Directors may, at any time, decide to liqui- The Fund date the Compartment in question and cancel the The Fund is formed for an indefinite period. However, Shares of that Compartment. the Board of Directors may at any time propose to dissolve the Fund at an extraordinary general Shareholders’ In the event of the dissolution of a Compartment or the meeting. Fund, the liquidation will be carried out pursuant to the applicable Luxembourg laws and regulations that define If the Share capital falls below two-thirds of the mini- the procedures to enable Shareholders to participate in mum capital required by law, the Board of Directors liquidation dividends and in this context provide for the must refer the matter of dissolution to the general meet- depositing of any amount that could not be distributed ing, deliberating without any quorum and deciding by a to Shareholders when the liquidation is complete with simple majority of the Shares cast at the meeting. the Caisse de Consignation in Luxembourg. Any If the Share capital is less than a quarter of the mini- amounts deposited that are not claimed will be subject mum capital required, the directors must refer the mat- to time-barring in accordance with Luxembourg law. The ter of dissolution of the Fund to a general meeting, de- net proceeds from the liquidation of each Compartment liberating without any quorum; dissolution may be de- will be distributed to holders of Shares in the Class of cided by Shareholders holding a quarter of the Shares Shares in question in proportion to the number of cast at the meeting. Shares they hold in that Class of Shares.

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Merger/ liquidation of Classes of Share  the terms of issue include an under- The Board of Directors may decide to liquidate, consoli- taking that an application will be date or split a Class of Shares of any Compartment. made for admission to be officially Such decision will be published in accordance with ap- listed on a stock exchange or other regulated, regularly functioning mar- plicable laws and regulations. The Board of Directors ket which is recognised and open to may also submit the question of the liquidation, consoli- the public; dation or split of a Class of Shares to a meeting of holders of such Class of Shares. Such meeting will resolve  and that this admission is obtained at the latest within one year of the is- with a simple majority of the votes cast. sue. 5. Units or shares of approved Undertakings for Collective Investment in Transferable Securities INVESTMENT RESTRICTIONS (UCITS) in compliance with Directive General Provisions 2009/65/EC and/or other Undertakings for Col- Rather than concentrate on a single specific investment lective Investment (UCI) within the meaning of objective, the Fund is divided into different Compart- Art. 1, paragraph (2), point a) of Directive ments, each of which has its own investment policy and 2009/65/EC, whether or not established in a its own risk profile by investing in a specific market or in Member State, provided that: a group of markets.  such other UCIs are authorised in Investment Restrictions compliance under laws stipulating For the purposes of this section, “Member State” means that the entities are subject to supervision that the CSSF considers as a Member State of the European Union. Countries that equivalent to that laid down by the are parties to the European Economic Area Agreement EU Law and that cooperation be- that are not Member States of the European Union are tween the authorities is sufficiently considered in the same category as Member States of ensured; the European Union, within the limits defined by that  the level of protection guaranteed to agreement and related laws. holders of shares or units in the other A. §1 UCIs is equivalent to that intended The Fund’s investments shall consist solely of one or for holders of shares or units of a more of the following: UCITS and, in particular, that the rules relating to the assets segrega- 1. Transferable securities and money market in- tion, borrowings, lending, short sales struments admitted to or dealt in on a regulated of transferable securities and money market within the meaning of Article 4 of the market instruments are equivalent to MiFID Directive; the requirements of Directive 2009/65/EC; 2. Transferable securities and money market instruments dealt in on another regulated and  the business of these other UCIs is regularly functioning market of a Member State, reported in half-yearly and annual re- that is recognised and open to the public; ports that enable valuation of assets and liabilities, revenues and opera- 3. Transferable securities and money market in- tions for the period concerned; and struments admitted to official listing on a stock that exchange of a state, which is not part of the Eu- ropean Union or traded on another market of a  the proportion of net assets that the state that is not part of the European Union, UCITS or the other UCIs whose ac- which is regulated and regularly functioning, quisition is contemplated may invest recognised and open to the public; overall in units or shares of other UCITS or other UCIs in conformity 4. Recently issued transferable securities and with their management rules or money market instruments provided that:

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constitutive documents, does not ex- exchange rates or currency rates, in ceed 10%. which the relevant Compartment may invest in conformity with its invest-  Where one of the Fund’s Compart- ment objectives; ments invests in the units of other UCITS and/or of other UCIs that are  the counterparties to OTC derivative managed either directly or via delega- transactions are establishments sub- tion by the same Management Com- ject to prudential supervision and be- pany or by any other company to longing to categories approved by the which the Management Company is CSSF; and linked as part of a joint management  the OTC derivative instruments are or control process, or via a material reliably and verifiably evaluated on a direct or indirect interest, said Man- daily basis and can be, at the Fund’s agement Company or the other com- initiative, sold, liquidated or closed pany cannot charge subscription or by an offsetting transaction, at any redemption fees relating to the rele- time and at their fair value; vant Compartment’s investment in the units of other UCITS and/or UCIs. 8. Money market instruments other than those dealt on a regulated market and designated by  Where one of the Compartments in- Art. 1 of the 2010 Act, provided that the issue vests a significant portion of its as- or the issuer of these instruments are them- sets in other UCITS and/or other UCIs selves subject to regulations whose aim is to linked to the Fund, as set out above, protect the investors and investments and that the Fund shall mention the maximum the instruments are: management fee amount that can be charged both to the actual Compart-  issued and guaranteed by a central, ment and to the other UCITS and or regional or local administration, by a UCIs in which it intends to invest in central bank of a Member State, by the Annexes to the Prospectus. The the European Central Bank, by the Fund shall indicate the maximum European Union or by the European percentage of the management fees Investment Bank, by a country out- incurred both at the level of the Com- side the EU, or, in the case of a fed- partment and at that of the UCITS eral state, by one of the members of and/or other UCIs in which it invests the federation, or by an international in its annual report. public agency of which one or more Member States are members; or 6. Deposits with credit institutions repayable on request or which can be withdrawn and whose  issued by a company whose securities maturity is twelve months or less, provided that are dealt on regulated markets speci- the credit establishment has its registered of- fied in points 1), 2) or 3) above; or fice in a Member State or, if the registered office of the credit establishment are situated in  issued or guaranteed by an establish- a Third Country, is subject to prudential rules ment subject to prudential supervi- considered by the CSSF as equivalent to those sion according to criteria defined by provided in EU law. European Union law, or by an establishment that is subject to and in 7. Financial derivative instruments, including conformity with prudential rules con- equivalent cash-settled instruments, that are sidered by the CSSF as at least as dealt on a regulated market of the kind speci- strict as those laid down by EU Law; fied in points 1), 2) and 3) above, and/or over- or the-counter (“OTC”) derivative instruments, provided that:  issued by other entities belonging to categories approved by the CSSF as  the underlying assets consist of in- long as the investments in these instruments allowed under Book A, §1, struments are subject to rules for pro- financial indexes, interest rates, tecting investors that are at least

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equivalent to those prescribed by the prudential supervision and to transactions of first, second or third indents, and OTC derivative instruments with these estab- that the issuer is a company whose lishments. Notwithstanding the individual limits capital and reserves are at least ten set in paragraph 1) above, a Compartment shall million euros (EUR 10,000,000) and not combine, where this would lead it to invest which presents and publishes its an- more than 20% of its net assets in a single nual accounts in accordance with the body, any of the following: fourth Directive 78/660/EEC, or is an  investments in transferable securities entity which, within a group of com- or money market instruments issued panies including one or more listed by the said body, companies, is dedicated to financing the group or is an entity which is ded-  deposits with the said body, or icated to financing securitisation vehicles which benefit from a banking  risks related to transactions involving liquidity line. OTC derivative instruments with the said body. §2 However: 3. The 10% limit defined in the first sentence of paragraph 1) above may be raised to a maxi- 1. the Fund may not invest more than 10% of the mum of 35% when the transferable securities net assets of each Compartment in transferable or the money market instruments are issued or securities or money market instruments other guaranteed by a Member State, by its local au- than those mentioned in §1 above; thorities, by a third state or by international public bodies of which one or more Member 2. the Fund cannot directly acquire precious met- States are members. The transferable securities als or certificates representing precious metals; and money market instruments mentioned in 3. the Fund may acquire movables and immova- this paragraph are not accounted for when ap- bles which is essential for the direct pursuit of plying the 40% limit mentioned in paragraph 2) its business. above.

§3 4. The 10% limit defined in the first sentence of The Fund may hold liquid assets, on an ancillary basis, paragraph 1) above may be raised to a maxi- unless other provisions are specified in the Annexes for mum of 25% for certain debt securities, when each individual Compartment: they are issued by a credit establishment having its registered headquarters in a Member State B. that is legally subject to special public auditing 1. The Fund may invest no more than 10% of the designed to protect holders of the bonds. In net assets of each Compartment in transferable particular, the amounts originating from the is- securities or money market instruments issued sue of the bonds must be invested, in accord- by the same body and cannot invest more than ance with the law, in assets that adequately 20% of its net assets in deposits made with the cover, for the entire duration of the validity of same entity. The counterparty risk of a Com- the bonds, the related liabilities and that will be partment in a transaction involving OTC deriva- distributed preferentially as redemption of the tive instruments may not exceed 10% of the capital and payment of accrued interest in the net assets when the counterparty is one of the event of bankruptcy by the issuer. When a Com- credit institutions specified in Book A, §1, point partment invests more than 5% of its net assets 6), or 5% of its net assets in other cases. in bonds as referred in this paragraph and issued by a single issuer, the total value of the in- The total value of the transferable securities 2. vestments may not exceed 80% of the value of and money market instruments held by a Com- the net assets of a Compartment of the Fund. partment in the issuing bodies in which it in- The transferable securities and money market vests more than 5% of its net assets shall not instruments mentioned in this paragraph are exceed 40% of the value of its net assets. This not accounted for when applying the 40% limit limitation does not apply to deposits with finan- mentioned in paragraph (2), above. cial establishments that are subject to

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5. The limits set out in the previous points 1), 2), potential losses resulting from this kind of swap 3) and 4) may not be combined and therefore, contract creating an exposure to a single UCITS the investments in transferable securities or or UCI, together with direct investments in this money market instruments of a single issuer, in single UCITS or UCI, will not in total exceed deposits or financial derivative instruments in- 20% of the net assets of the Compartment in volving this entity, in conformity with these par- question. If these UCITS are Compartments of agraphs, shall not exceed a total of 35% of the the Fund, the Swap contract will include provi- net assets of the Compartment in question. sions for cash settlement. 6. The companies that are grouped together in the 9. consolidated accounts, within the meaning of a. The limits specified in points B 1) and B 2) Directive 2013/34/UE or in conformity with rec- above are raised to a maximum of 20% for in- ognised international accounting rules, are con- vestments in shares and/or debt securities is- sidered as a single body for the calculation of sued by a single body when, in accordance with the limits described in points 1) to 5) of this the investment policy of a Compartment, its ob- Book B. jective is to replicate the composition of a spe- Each Compartment of the Fund may invest cu- cific index of equities or debt securities that is mulatively up to 20% of its net assets in the recognised by the CSSF, on the following bases: transferable securities or money market instru-  the composition of the index is suffi- ments within the same group. ciently diversified; 7. Notwithstanding the above and respecting the  the index is a representative bench- principle of risk diversification, the Fund may mark for the market to which it reinvest up to 100% of the net assets of each fers; Compartment in different issues of transferable securities and money market instruments is-  it is published in an appropriate man- sued or guaranteed by a Member State, by the ner. local authorities of a Member State, by a coun- b. The limit laid down in paragraph a) above is try that is not part of the European Union (at raised to 35% where that proves to be justified the date of the Prospectus, the Member States by exceptional market conditions, in particular of OECD, Singapore and the Group of Twenty) on regulated markets where certain transferable or by an international public body of which one securities or money market instruments are or more Member States are members, provided largely dominant. Investment up to that limit is that these securities belong to at least six dif- only permitted for a single issuer. ferent issues and that the securities belonging to a single issue do not exceed 30% of the net 10. A Compartment (defined as an “Investing Com- assets of the Compartment in question. partment”, for purposes of this paragraph) may subscribe for, acquire and/or hold securities to 8. The Fund may not invest more than 20% of the be issued or that have been issued by one or net assets of each Compartment in a single more other Compartments (each a “Target Com- UCITS or other UCI as defined in Book A, §1 partment”), without the Fund being subject to 5). For the purpose of this limit, each Compart- the requirements imposed by the 1915 Law, ment of a UCI with multiple Compartments is with respect to a company’s subscription, ac- considered a separate issuer, provided that the quisition and/or holding of its own shares, pro- liabilities of the different Compartments with vided that: regard to third parties are segregated.  the Target Compartment does not in- The investment in units or shares of UCIs other vest in the Investing Compartment than UCITS may not in aggregate exceed of that is invested in this Target Com- 30% of the net assets of each Compartment. partment; and When a Compartment’s investment policy al-  the proportion of assets that the Tar- lows it to invest via total return swaps in shares get Compartments whose acquisition or units of UCITS and/or other UCIs, the 20% is envisaged and which may be wholly limit defined above also applies, such that the invested, in accordance with their

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investment policy, in units or shares State, by its local authorities, or by a state that is of other UCITS and/or other UCIs, in- not a member of the European Union; cluding other Target Compartments of b. to the transferable securities and money market in- the same UCI, does not exceed 10%; struments issued by international public bodies of and which one or more Member States are members;  any voting right attached to the c. to shares held in the capital of a company incorpo- Shares concerned is suspended as rated in a state outside the EU that invests its as- long as they are held by the Investing sets mainly in the securities of issuers of that Compartment and notwithstanding state, where under the legislation of that state such appropriate accounting treatment in a holding represents the only way in which the the periodic financial statements; UCITS can invest in the securities of issuing bodies and in that state. This derogation is, however, only ap-  in any event, for as long as these se- plicable when the state outside the EU respects in curities are held by the Investing its investment policy the limits established by Arti- Compartment their value is not taken cles 43 and 46 and Article 48, paragraphs (1) and into account in the calculation of the (2), of the 2010 Act. In the case that the limits de- Fund’s net assets for verification of fined in Articles 43 and 46 of this law are ex- the minimum threshold of net assets ceeded, Article 49 applies with the necessary mod- imposed by the 2010 Act. ifications;

C. §1 d. to shares held by one or more investment compa- The Fund may not acquire across all the Compartments nies in the capital of subsidiary companies exercis- together: ing management, advising, or sales activities in the country where the subsidiary is established in re- 1. shares granting voting rights in sufficient num- gard to the redemption of units at the unitholders’ ber to allow it to exert a significant influence on request exclusively on its own or their behalf. the management of an issuing body; §2 2. more than: 1. The Fund may, for each Compartment, on a temporary basis, borrow in a proportion not exceeding  10% of the non-voting shares of the 10% of the assets of the Compartment con- same issuer; cerned.  10% of the debt instruments of the 2. The Fund may not grant loans or act as guarantor same issuer; for third parties.  25% of the units or shares of the The paragraph above does not prevent the acqui- same UCITS or other UCI within the sition by the Fund of transferable securities, meaning of Article 2 §2 of the 2010 money market instruments or other financial in- Act; struments allowed under Book A, §1, points 5),  10% of money market instruments of 7) and 8) not fully paid. any single issuer. 3. The Fund may not, for any Compartment, carry The limits laid down in the second, third and out uncovered sales of transferable securities, fourth indents above may be disregarded at the money market instruments or other financial in- time of acquisition if, at that time, the gross struments specified in Book A, §1, points 5), 7) and 8). amount of bonds or of the money market instruments or the net amount of the instruments in is- §3 sue cannot be calculated; While adhering to the principle of risk spreading, a newly-approved Compartment is allowed to derogate The restrictions mentioned in points 1) and 2) from Articles 43, 44, 45 and 46 of the 2010 Act, for a above are not applicable: period of six months following the date of its authorisa- a. to the transferable securities and money market in- tion. struments issued or guaranteed by a Member

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Use of derivative financial products and instruments Nonetheless, these transactions can never be made in Options, warrants, futures contracts, exchange contracts order to modify the investment policy. on transferable securities, currencies or financial instru- When the investment policy of a Compartment provides ments To ensure that the portfolio is managed effectively or for that the latter may invest in total return swaps and/or hedging purposes, the Fund may buy and sell call and other financial derivative instruments that display simi- put options, warrants and futures contracts, and enter lar characteristics, these investments, unless otherwise into exchange contracts, and for the Compartments specified in the Annexes, will be made for hedging mentioned in Annexes 2 and 3, CFDs (Contracts For Dif- and/or efficient portfolio management, in compliance ference) on transferable securities, currencies or any with the investment policy of such Compartment. other type of financial instrument, provided that these Where a Compartment uses total return swaps the un- financial derivative instruments are traded on a regu- derlying assets and investment strategies to which expo- lated market, operating regularly, that is recognised and sure will be gained are those allowed as per the relevant open to the public; however, these financial derivative Compartment’s investment policy and objectives set out instruments may also be traded over-the-counter (OTC), in the Annex relating to that Compartment. provided they are contracted with leading financial insti- In any case, such total return swaps and other financial tutions specialising in this type of transaction. derivative instruments that display the same characteris- Credit derivatives tics may have underlying assets such as currencies, in- The Fund may invest in buying and selling credit finan- terest rates, transferable securities, a basket of transfer- cial derivative instruments. Credit derivative products able securities, indexes, or undertakings for collective are used to insulate and transfer the credit risk associ- investment. ated with a base asset. There are two categories of The counterparties of the Fund will be leading financial credit derivatives: “financed” and “non-financed” de- institutions generally based in OECD member state spe- pending on whether or not the protection seller has cialised in this type of transaction, subject to prudential made an initial payment in relation to the base asset. supervision and having an investment grade credit rating Despite the great variety of credit derivatives, the three at the time of appointment. most common types of transaction are: These counterparties do not have discretionary power The first type: transactions on credit default products over the composition or management of the investment (such as Credit Default Swaps [CDS] or CDS options), portfolio of the Compartment or over the underlying as- are transactions in which the debts of the parties are sets of the financial derivative instruments. linked to the presence or absence of one or more credit The total return swaps and other financial derivative in- events in relation to the base asset. The credit events struments that display the same characteristics only give are defined in the contract and represent a decline in the Fund a right of action against the counterparty in the value of the base asset. Credit default products may the swap or in the derivative financial instrument, and either be paid in cash or by physical delivery of the base any potential insolvency of the counterparty may make it asset following the default. impossible for the payments envisioned to be received. The second type, total return swaps, is an exchange on The amounts paid out by a Compartment, pursuant to the economic performance of an underlying asset with- the total return swap contracts, are discounted at the out transferring ownership of the asset. When a buyer valuation date at the rate of the zero-coupon swap for purchases a total return swap, it makes a regular pay- the flows at maturity. The amounts received by the pro- ment at a variable rate, in return for which all the re- tection buyer, which result from a combination of op- sults relating to a notional amount of that asset (cou- tions, are also discounted, depending on several param- pons, interest payments, change in asset value) accrue eters, including price, volatility, and the probability of to it over a period of time agreed with the counterparty. defaults on the underlying assets. The value of total re- The use of these instruments can help offset the rele- turn swap contracts results from the difference between vant Compartment’s exposure.

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the two discounted flows described above. on an exceptional basis, to hold other liquid assets as hedges, provided that these assets can be used at any No more than 10% of a Compartment’s net assets will time to acquire the underlying financial instrument due be subject to total return swaps, except as otherwise to be delivered and that the additional market risk asso- provided in the Annex for an individual Compartment. ciated with this type of transaction is adequately valued. Where a Compartment enters into total return swaps, the Substitution by another underlying hedge in the event of expected proportion of such Compartment’s net assets a cash settlement that could be subject to total return swaps will be set When the derivative financial instrument is settled in out in the Annex for this individual Compartment. cash, automatically or at the Fund’s discretion, the A Compartment that does not enter into total return Fund is allowed to not hold the specific underlying in- swaps as of the date of the Prospectus (i.e. its expected strument as a hedge. In this case, the following catego- proportion of assets under management subject to total ries of instruments are acceptable hedges: return swaps being 0%) may however enter into total re- a. cash; turn swaps provided that the maximum proportion of the net assets of that Compartment that could be subject to b. liquid debt securities, provided that appropriate safeguard methods (such as discounts or “hair- such transactions should not exceed 10% and that the cuts”) exist; relevant Annex relating to this individual Compartment is updated accordingly at the next available opportunity. c. any other very liquid asset, considered because of its correlation with the underlying asset of the The third type, “credit spread” derivatives, are credit derivative instrument, provided appropriate protection transactions in which the payments may be safeguard methods exist (such as a discount, made either by the buyer or by the seller of the protec- where applicable). tion based on the relative credit value of two or more Calculating the amount of the hedge base assets. The amount of the hedge must be calculated using the However, at no time may these operations be conducted liabilities approach. for the purpose of modifying the investment policy. Efficient portfolio management techniques In order to reduce risks or costs or to procure capital The rebalancing frequency for an index that is the un- gains or revenues for the Fund, the Fund may lend or derlying asset for a financial derivative is determined by borrow securities and engage in repurchase or reverse the provider of the index in question. The rebalancing of repurchase transactions as described below. the index will not result in any costs for the Compart- ment in question. The Fund will ensure that these transactions are kept at a level at which it can fulfil its obligation at any time to Application of sufficient hedging on transactions involv- redeem its Shares and that these transactions do not ing derivative financial products and instruments whether or not traded on a regulated market compromise the management of the Fund’s assets, in Sufficient hedging in the absence of a cash settlement compliance with its investment policies. When the derivative financial contract provides, either These transactions will be conducted in compliance with automatically or at the choice of the Fund’s counter- the rules specified in CSSF Circulars 08/356 and party, for the physical delivery of the underlying finan- 14/592 as amended. cial instrument on the date of expiry or on exercise, and as long as physical delivery is common practice for the To the full extent permitted by and within the regulatory instrument concerned, the Fund must hold the underly- limits, and in particular pursuant to (i) Article 11 of the ing financial instrument in its portfolio as a hedge. Luxembourg Regulations of 8 February 2008 on certain definitions of the amended Law of 20 December 2002 Exceptional substitution by another underlying hedge in on undertakings for collective investment, (ii) CSSF Cir- the absence of a cash settlement cular 08/356 and (iii) CSSF Circular 14/592, any Com- When the underlying financial instrument of a derivative partment can enter into Securities Lending Agreements financial instrument is very liquid, the Fund is allowed, and Repurchase/Reverse Repurchase Agreements.

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management subject to Securities Lending Agreements The selection of counterparties to such transactions will being 0%) may however enter into Securities Lending generally be financial institutions based in an OECD Agreements provided that the maximum proportion of member state and have an investment grade credit rat- the net assets of that Compartment that could be sub- ing. Details of the selection criteria and a list of ap- ject to such transactions should not exceed 10% and proved counterparties are available from the registered that the relevant Annex relating to this individual Com- office of the Management Company. partment is updated accordingly at the next available opportunity. Securities Lending Agreement The Fund may enter into Securities Lending Agreements Repurchase and Reverse Repurchase Agreements only if the following conditions are met: The Fund may engage in Reverse Repurchase Agree- ments only if the following conditions are met: a. the counterparty is subject to prudential supervision rules that the CSSF deems equivalent to a. the counterparty is subject to prudential super- those required under EU Law; vision rules that the CSSF deems equivalent to b. if the counterparty is an entity linked to the those required under EU Law; Management Company, care should be taken to b. the value of a transaction is maintained at a avoid any resulting conflicts of interest in order level that allows the Fund to meet its redemp- to ensure that the agreements are entered into tion obligations at any time; and at arm’s length; c. the Fund may recall the total amount in cash or c. the counterparty must be a financial intermedi- terminate the Reverse Repurchase Agreement at ary (such as a banker, a broker, etc.) acting for any time, either on a prorated basis or on a its own account; and mark-to-market basis. d. the Fund may recall any securities lent or termi- Where a Compartment enters into Reverse Repurchase nate any Securities Lending Agreement that it Agreements, the underlying assets and investment strat- has entered into. egies to which exposure will be gained are those allowed Where a Compartment enters into Securities Lending as per the relevant Compartment’s investment policy Agreements, the underlying assets and investment strat- and objectives set out in the Annex relating to that Com- egies to which exposure will be gained are those allowed partment. as per the relevant Compartment’s investment policy No more than 10% of a Compartment’s net assets will and objectives set out in the Annex relating to that Com- be subject to Reverse Repurchase Agreements, except partment. as otherwise provided in the Annex for an individual Implementation of the above-mentioned securities lend- Compartment. ing programme should not have any impact on the risk The Fund may also engage in Repurchase Agreements profile of the concerned Compartments of the Fund. only if the following conditions are met: No more than 30% of a Compartment’s net assets will a. the counterparty is subject to prudential super- be subject to Securities Lending Agreements, except as vision rules that the CSSF deems equivalent to otherwise provided in the Annex for an individual Com- those required under European law; partment. b. the value of a transaction is maintained at a Where a Compartment enters into Securities Lending level that allows the Fund to meet its redemp- Agreements, the expected proportion of such Compart- tion obligations at any time; and ment’s net assets that could be subject to Securities c. the Fund may recall any security subject to the Lending Agreements will be set out in the Annex for this Repurchase Agreement or terminate the Repur- individual Compartment. chase Agreement into which it has entered at any time. A Compartment that does not enter into Securities Lending Agreements as of the date of the Prospectus Where a Compartment enters into Repurchase Agree- (i.e. its expected proportion of assets under ments, the underlying assets and investment strategies

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to which exposure will be gained are those allowed as to the relevant Compartment. per the relevant Compartment’s investment policy and Fixed operating fees charged per transaction may be objectives set out in the Annex relating to that Compart- payable to the counterparty to the repurchase/reverse re- ment. No more than 10% of a Compartment’s net assets purchase transaction or total return swap, the Depositary will be subject to Repurchase Agreements, except as Bank and/or Banque Pictet & Cie S.A. otherwise provided in the Annex for an individual Com- partment. Details of the direct and indirect operational fees/costs arising from Repurchase/Reverse Repurchase Agree- Where a Compartment enters into Reverse Repurchase ments and total return swaps will be included in the Agreements or Repurchase Agreements, the expected semi-annual and annual reports of the Fund. proportion of such Compartment’s net assets that could be subject to such agreements will be set out in the An- Management of collateral nex for this individual Compartment. General In the context of OTC financial derivatives transactions A Compartment that does not enter into Reverse Repur- and efficient portfolio management techniques, each chase Agreements or Repurchase Agreements as of the Compartment concerned may receive collateral with a date of the Prospectus (i.e. its expected proportion of view to reduce its counterparty risk. This section sets assets under management subject to Reverse Repur- out the collateral policy applied by the Fund in such chase Agreements or Repurchase Agreements being 0%) case. All assets received by a Compartment in the con- may however enter into such agreements provided that text of efficient portfolio management techniques (Secu- the maximum proportion of the net assets of that Com- rities Lending, Repurchase or Reverse Repurchase partment that could be subject to such agreements Agreements) shall be considered as collateral for the should not exceed 10% and that the relevant Annex re- purposes of this section. lating to this individual Compartment is updated accordingly at the next available opportunity. Eligible collateral Collateral received by the relevant Compartment may be All revenues from Securities Lending Agreements, minus used to reduce its counterparty risk exposure if it com- fees and commissions owed to the Depositary Bank plies with the criteria set out in applicable laws, regula- and/or the Agent, with each of these entities belonging tions and circulars issued by the CSSF from time to to the Pictet Group in the securities lending programme, time notably in terms of liquidity, valuation, issuer shall be payable to the relevant Compartment. credit quality, correlation, risks linked to the manage- In addition, the Fund will repay the Agent and the ment of collateral and enforceability. In particular, col- Depositary Bank for all reasonably incurred expenses lateral should comply with the following conditions: related to the Securities Lending Agreements (including (a) Any collateral received other than cash should be of SWIFT fees, teleconferencing fees, fax fees, postage high quality, highly liquid and traded on a regulated fees, etc.). market or multilateral trading facility with transparent Generally, the above mentioned direct and indirect oper- pricing in order that it can be sold quickly at a price ational expenses which may be deducted from the reve- that is close to pre-sale valuation; nue delivered to the relevant Compartment should not (b) It should be valued on at least a daily basis and as- exceed 30% of the gross revenue arising from Securities sets that exhibit high price volatility should not be ac- Lending Agreements. Details of such amounts and the cepted as collateral unless suitably conservative haircuts financial institution arranging the transactions will be are in place; disclosed in the semi-annual and annual reports of the (c) It should be issued by an entity that is independent Fund. from the counterparty and is expected not to display a All revenue from Repurchase/Reverse Repurchase Agree- high correlation with the performance of the counter- ments and total return swaps, minus any minor direct party; and indirect operating costs/fees owed to the Depositary (d) It should be sufficiently diversified in terms of Bank and/or Banque Pictet & Cie S.A., shall be payable

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country, markets and issuers with a maximum exposure Agent each Banking Day (“mark to market”) taking into of 20% of the Compartment's net asset value to any sin- consideration the market conditions and any supple- gle issuer on an aggregate basis, taking into account all mentary fees, as applicable. If the collateral already fur- collateral received. By way of derogation, a Compart- nished seems inadequate in view of the amount to be ment may be fully collateralised in different transferable covered, the Agent will ask the borrower to promptly fur- securities and money market instruments issued or guar- nish additional collateral in the form of securities that anteed by a Member State, one or more of its local au- meet the criteria listed above. The collateral received by thorities, a Third Country, or a public international body the Fund as part of the Securities Lending Agreements to which one or more Member States belong. In such will not be reinvested. event, the relevant Compartment should receive securi- OTC financial derivative instruments and Repur- ties from at least six different issues, but securities from chase/Reverse Repurchase Agreements any single issue should not account for more than 30% of the Compartment's net asset value; The collateral furnished for OTC financial derivative instruments will be either (i) cash, and/or (ii) bonds issued (e) It should be capable of being fully enforced by the or guaranteed by the government or by a regional or lo- relevant Compartment at any time without reference to cal government in a member state of the OECD, or is- or approval from the counterparty; sued or guaranteed by local, regional or international (f) Where there is a title transfer, the collateral re- branches of supranational institutions or organisations ceived will be held by the Depositary. For other types of that have a rating of at least AA and/or (iii) non-financial collateral arrangements, the collateral can be held by a corporate bonds rated at least AA and/or (iv) equities be- third-party custodian which is subject to prudential su- longing to large cap indices. pervision, and which is unrelated to the provider of the The collateral furnished for Repurchase/Reverse Repur- collateral. chase Agreements will be free of credit and liquidity (g) Collateral received shall have a quality of credit of risk. The market value of such collateral should be cer- investment grade. tain, meaning that it would be easy to sell for a predict- able value in the event of default by the collateral giver. Securities Lending Agreements For each Securities Lending Agreement, the Fund must The collateral will be either (i) cash and/or (ii) bonds is- receive collateral, the value of which for the full term of sued or guaranteed by the government or by a regional the lending agreement must be at least equivalent to or local government in a member state of the OECD, or 90% of the total valuation (including interests, divi- issued or guaranteed by local, regional or international dends and any other rights) of the securities lent to the branches of supranational institutions or organisations borrower. However, the Agent shall request a target col- that have a rating of at least AA. lateral of 105% of the market value of the securities With regard to OTC financial derivative instruments and lent, and no discount shall be applied to that value. Repurchase/Reverse Repurchase Agreements, (1) the The collateral furnished for the lent securities will be ei- Compartment will monitor the market value of each ther (i) cash and/or (ii) bonds issued or guaranteed by transaction daily to ensure that it is secured in an ap- the government or by a regional or local government in a propriate manner and will make a margin call if the member state of the OECD, or issued or guaranteed by value of the securities and that of the liquid assets in- local, regional or international branches of supranational creases or decreases in respect of one another beyond institutions or organisations that have a rating of at least the minimum applicable margin-call amount (the collat- AA and/or (iii) bonds issued or guaranteed by leading is- eral having been provided in the form of liquid assets) suers offering adequate liquidity and/or (iv) non-finan- and (2) will only enter into these transactions with coun- cial corporate bonds rated at least AA and /or (v) equi- terparties whose resources and financial soundness are ties belonging to large cap indices. adequate according to an analysis of the counterparty’s solvency conducted by the Pictet Group. The market value of the lent securities and of the collateral will be reasonably and objectively calculated by the Collateral received by the Fund in the form of liquid

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assets as part of OTC derivative financial instrument securities bearing long residual maturity. transactions and Repurchase/Reverse Repurchase Acquisition and sale of securities under Repurchase Agreements may be reinvested in accordance with the Agreements investment policy of the Compartment(s) concerned and The Fund may act as buyer in Repurchase Agreements subject to point 43 j) of the ESMA Guidelines. The risks that consist of purchases of securities that contain to which investors are exposed within the context of clauses allowing the seller (the counterparty) to repur- these reinvestments are outlined in section “Risk Con- chase from the Fund the securities sold, at a price and siderations” in the general part of the Prospectus. term stipulated between the parties at the time of sign- Haircut ing the contract.

The following haircuts for collateral are applied by the The Fund may act as seller in Repurchase Agreements Management Company (the Management Company re- that consist of purchases of securities containing serves the right to vary this policy at any time). The fol- clauses allowing the Fund to repurchase the securities lowing haircuts apply to collateral received in the con- sold from the buyer (the counterparty), at a price and text of OTC financial derivative transactions and Repur- term stipulated between the p arties at the time of sign- chase/Reverse Repurchase Agreements. In case of a sig- ing the contract. nificant change of the market value of the collateral, the Structured Finance Securities relevant haircut levels will be adapted accordingly. In The Fund may invest in Structured Finance Securities; the context of Securities Lending Agreements, the secu- however, when Compartments invest in structured fi- rities received as collateral have to allow for a target nance securities of the credit-linked notes-type, this will coverage amounting to 105% of the total mark-to mar- be clearly indicated in the Compartment’s investment ket value of the lent securities. policy.

Eligible Collateral Minimum haircut Structured finance securities include, but are not limited to, asset-backed securities, asset-backed commer- Cash 0% cial papers and portfolio credit-linked notes. Asset-backed securities are securities that are backed by Bonds issued or guaranteed financial cash flows from a group of debt securities (cur- by the government or by a rent or future) or by other underlying assets that may or regional or local government may not be fixed. Such assets may include, but are not in a member state of the limited to, mortgages on residential or commercial prop- OECD, or issued or guaran- 0.5% erty, leases, credit card debts as well as consumer or teed by local, regional or in- commercial loans. Asset-backed securities may be struc- ternational branches of su- tured in various ways, either as a “true-sale” in which pranational institutions or the underlying assets are transferred within an ad hoc organisations that have a structure that then issues the asset-backed securities or rating of at least AA synthetically, in which the risk linked to underlying as- Non-financial corporate sets is transferred via derivative instruments to an ad 1% bonds rated at least AA hoc structure that issues the asset-backed securities.

Equity belonging to large Portfolio credit-linked notes are securities in which pay- 15% cap indices. ment of the nominal amount and the interest is directly or indirectly linked to one or more managed or unman- aged portfolios of reference entities and/or assets (“ref- Maturity erence credit”). Until a threshold credit event occurs in relation to a reference credit (such as bankruptcy or pay- The maturity of collateral is taken into account through ment default), a loss will be calculated (corresponding, the haircuts applied. A higher haircut is applied to for example, to the difference between the nominal

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value of an asset and its recovery value). Risk management The Fund utilises a risk management method that allows Asset-backed securities and portfolio credit-linked notes it at all times to monitor and measure the risk associ- are usually issued in different tranches. Any losses oc- ated with positions and the contribution of the positions curring in regard to underlying assets or, depending on to the overall portfolio risk profile. the case, calculated in relation to reference credits, are first assigned to the most junior tranches until the nomi- The Fund also utilises a method that allows a precise nal amount of the securities is brought to zero; then it is and independent evaluation of the value of its OTC fi- assigned to the nominal amount of the next most junior nancial derivatives. tranche remaining and so on. The Fund makes sure that the overall risk associated Consequently, in the event that (a) for asset-backed se- with the financial derivative instruments does not ex- curities, the underlying assets do not produce the exceed the total net value of its portfolio. Risks are calcu- pected financial flows and/or (b) for portfolio credit- lated taking account of the current value of the underly- linked notes, one of the defined credit events occurs ing assets, the counterparty risk, foreseeable changes in with regard to one or more underlying assets or refer- the markets and the time available for liquidating the ence credits, there may be an effect on the value of the positions. related securities (which may be nil) and any amount The Fund utilises the VaR method, (coupled with stress paid on such securities (which may be nil). This may in testing) or the commitment method in order to evaluate turn affect the net asset value per Share of the Compart- the market risk component of the overall risk associated ment. Moreover, the value of the structured finance se- with financial derivative instruments. curities and thus the net asset value per Share of the Compartment may, from time to time, be negatively af- The VaR is defined as the maximum potential loss over fected by macro-economic factors, including for exam- a time horizon of 20 business days and is measured ple unfavourable changes in the economic sector of the within a 99% confidence level. underlying assets or the reference credits (including the The VaR may be calculated either using the absolute industrial, service, and real estate sectors), economic re- VaR approach or using the relative VaR approach: cession in the respective countries or global recession, The absolute VaR approach limits the maximum VaR as well as events linked to the inherent nature of the as- that a Compartment can have relative to its Net Asset sets (thus, a loan to finance a project is exposed to risks Value. It is measured against a regulatory limit of 20%. related to the type of project). The relative VaR approach is used for Compartments The extent of such negative effects is thus linked to the where a reference portfolio is defined reflecting their in- geographic and sectoral concentrations of the underlying vestment strategy. The relative VaR of a Compartment is assets, and the type of underlying assets or reference expressed as a multiple of the VaR of the reference port- credits. The degree to which a particular asset-backed folio and is limited by regulation to no more than twice security or a portfolio credit-linked note is affected by the VaR of this reference portfolio. such events will depend on its issue tranche; the most junior tranches, even ones rated “investment grade”, The counterparty risk associated with OTC derivative in- may consequently be exposed to substantial risks. struments is evaluated in accordance with the market value notwithstanding the need to use ad hoc price fix- Investments in structured finance securities may be ing models when the market price is not available. more exposed to a greater liquidity risk than investing in government or corporate bonds. When a liquid market The expected leverage is calculated complying the for these structured finance securities does not exist, ESMA 10/788 guidelines as the sum of notionals of all such securities may only be traded for an amount lower derivatives contracts entered into by the Compartment, than their nominal amount and not at the market value expressed as a percentage of the net asset value. It does which may subsequently affect the net asset value per not take into account any netting and hedging arrange- Share of the Compartment. ments. Consequently, the expected leverage is not

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representative of the real level of investment risk within is the risk that collateral received may yield less the Compartment. The expected leverage is an indica- than the cash placed out, whether because of tive level and not a regulatory limit. Depending on mar- inaccurate pricing of the collateral, adverse market movements, a deterioration in the credit ket conditions, the leverage may be greater. However, rating of issuers of the collateral, or the illiquid- the Compartment will remain in line with its risk profile ity of the market in which the collateral is and notably comply with its VaR limit. traded and that (B) (i) locking cash in transactions of excessive size or duration, (ii) delays in RISK CONSIDERATIONS Investors must read this "Risk Considerations" section recovering cash placed out, or (iii) difficulty in realising collateral may restrict the ability of the before investing in any of the Compartments. Compartment to meet redemption requests, se- This "Risk Considerations" section contains explanations curity purchases or, more generally, reinvest- of the various types of investment risks that may be ap- ment. plicable to the Compartments. Please refer to the sec- In case of reinvestment of cash collateral such tion "Risk Factors" of appendices for details as to the reinvestment may (i) create leverage with corre- most relevant risks applicable to each Compartment. In- sponding risks and risk of losses and volatility, vestors should be aware that other risks may also be rel- (ii) introduce market exposures inconsistent evant to the Compartments from time to time. with the objectives of the Compartment, or (iii) yield a sum less than the amount of collateral Counterparty risk to be returned. Generally, in case of reinvest- The risk of loss due to a counterparty failing to meet its ment of cash collateral all risks associated with contractual obligations in a transaction. This may entail a normal investment apply. the Compartments to delayed delivery. In the case of de- In either case, where there are delays or diffi- fault of the counterparty, the amount, nature and timing culties in recovering assets or cash, collateral of recovery may be uncertain. posted with counterparties, or realising collateral received from counterparties, the Compart- › Collateral risk. The risk of loss caused by de- ments may encounter difficulties in meeting re- layed or partial recovery as well as loss of rights demption or purchase requests or in meeting on assets pledged as collateral. Collateral can delivery or purchase obligations under other take the form of initial margin deposits or as- contracts. sets with a counterparty. Such deposits or assets may not be segregated from the counter- Where a Compartment receives collateral, the party’s own assets and, being freely exchangea- custody risk the operational risk and the legal ble and replaceable, the Compartment may risk referred to below would also apply. have a right to the return of equivalent assets › Settlement risk. The risk of loss resulting from a rather than the original margin as-sets depos- counterparty's failure to deliver the terms of a ited with the counterparty. These deposits or contract at the time of settlement. The acquisi- assets may exceed the value of the relevant tion and transfer of holdings in certain invest- Compartments' obligations to the counterparty ments may involve considerable delays and in the event that the counterparty requires ex- transactions may need to be carried out at unfa- cess margin or collateral. In addition, as the vourable prices as clearing, settlement and reg- terms of a derivative may provide for one coun- istration systems may not be well organised in terparty to provide collateral to the other coun- some markets. terparty to cover the variation margin exposure arising under the derivative only if a minimum Credit risk transfer amount is triggered, the Compartments The risk of loss resulting from a borrower's failure to may have an uncollateralised risk exposure to a meet financial contractual obligations, for instance counterparty under a derivative up to such mini- timely payment of interest or principal. Depending on mum transfer amount. contractual agreements, various credit events may qual- Where a Compartment receives collateral, inves- ity as default, which include but are not limited to: tors must notably be aware that (A) in the event bankruptcy, insolvency, court-ordered reorganisation/liq- of the failure of the counterparty with which uidation, rescheduling of debts or non-payment of debts cash of a Compartment has been placed there

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payable. The value of assets or derivative contracts may losses that can negatively affect the net asset be highly sensitive to the perceived credit quality of the value of the Compartment. issuer or reference entity. Credit events may adversely › Liquidity risk affect the value of investments, as the amount, nature and timing of recovery may be uncertain. The risk that arises from lack of marketability or presence of sale restrictions. › Credit rating risk. The risk that a credit rating agency may downgrade an issuer's credit rating. › Asset liquidity risk. The inability to sell an asset Investment restrictions may rely on credit rating or liquidate a position within a defined thresholds and thus have an impact on securi- timeframe without a significant loss in value. ties selection and asset allocation. The Invest- Asset illiquidity can be caused by lack of estab- ment Managers may be forced to sell securities lished market for the asset or lack of demand at an unfavourable time or price. Credit rating for the asset. Large positions in any class of se- agencies may fail to correctly assess the credit curities of a single issuer can cause liquidity is- worthiness of issuers. sues. Risk of illiquidity may exist due to the relatively undeveloped nature of financial markets › High Yield investment risk. High yield debt in some countries. The Investment Managers (also known as non-investment-grade or specu- may be unable to sell assets at a favourable lative-grade) is defined as debt generally offer- price and time because of illiquidity. ing high yield, having low credit rating and high credit event risk. High yield bonds are often › Investment restriction risk. The risk arising from more volatile, less liquid and more prone to fi- governmental capital controls or restrictions nancial distress than other higher rated bonds. that may negatively impact the timing and The valuation of high yield securities may be amount of capital being divested. In some more difficult than other higher rated securities cases, the Compartments may not be able to because of lack of liquidity. Investment in this withdraw investments made in some countries. kind of securities may lead to unrealised capital Governments may change restrictions on foreign losses and/or losses that can negatively affect ownership of local assets, including but not lim- the net asset value of the Compartment. ited to restrictions on sectors, individual and aggregate trading quotas, percentage of control › Distressed and defaulted debt securities risk. and type of shares available to foreigners. The Bonds from issuers in distress are often defined Compartments may not be able to implement as those (i) that have been given a very specula- their strategies due to restrictions. tive long-term rating by credit rating agencies or › Restricted securities risk. In some jurisdictions, those (ii) that have filed for bankruptcy or ex- and under particular circumstances, some secu- pected to file for bankruptcy. In some cases, rities may have a temporary restricted status the recovery of investments in distressed or de- which can limit the fund’s ability to resell them. faulted debt securities is subject to uncertainty In consequence of such market restrictions, the related to court orderings and corporate reor- Compartment may suffer from reduced liquid- ganisations among other things. Companies ity. For instance, under the 1933 Act, rule 144 which issued the debt that has defaulted may addresses resale conditions of restricted securi- also be liquidated. In that context, the fund ties, which include, but are not limited to, the may receive, over a period of time, proceeds of purchaser qualifying as a qualified institutional the liquidation. The received amounts may be buyer. subject to a case-by-case specific tax treatment. The tax may be reclaimed by the author- Market risk ity independently from the proceed paid to the The risk of loss due to movements in financial market fund. The valuation of distressed and defaulted prices and changes in factors that affect these move- securities may be more difficult than other ments. Market risk is further declined into risk items higher rated securities because of lack of li- corresponding to major asset classes or market charac- quidity. The Compartment may incur legal ex- teristics. Recessions or economic slowdowns impact fi- penses when trying to recover principal or inter- nancial markets and may decrease the value of invest- est payments. Investment in this kind of securi- ments. ties may lead to unrealised capital losses and/or

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› Commodity risk. The risk which arises from po- › Real estate risk. The risk which arises from potential movements of commodity values, which tential movements in the level and volatility of include for instance agricultural products, met- real estate values. Real estate values are af- als, and energy products. The value of the Com- fected by a number of factors, including but not partments can be indirectly impacted by limited to changes in general and local eco- changes in commodity prices. nomic conditions, changes in supply of and demand for competing properties in an area, The risk which arises from poten- › Currency risk. changes in government regulations (such as tial movements of currency exchange rates. It is rent control), changes in real property tax rates the risk which arises from the holding of assets and changes in interest rates. The Compart- denominated in currencies different from the ment's value may be indirectly impacted by real Compartment's base currency. It may be af- estate market conditions. fected by changes in currency exchange rates between the base currency and these other cur- › Volatility risk. The risk of uncertainty of price rencies or by changes in regulations controlling changes. Usually, the higher the volatility of an these currency exchange rates. It must there- asset or instrument, the higher its risk. The fore be expected that currency exchange risks prices for transferable securities in which the cannot always be hedged and the volatility of Compartments invest may change significantly currency exchange rates to which the Compart- in short-term periods. ment is exposed may affect the net asset value › Emerging market risk. Emerging markets are of- of the Compartment. ten less regulated and less transparent than de- › Equity risk. The risk which arises from potential veloped markets and are often characterised by movements in level and volatility of stock poor corporate governance systems, non-normal prices. Equity holders often support more risk distributions of returns and are more exposed to than other creditors in the capital structure of market manipulation. Investors should be aware an entity. Equity risk includes among other that, due to the political and economic situa- risks, the possibility of loss of capital and sus- tion in some emerging countries, investments pension of income (dividend) for dividend pay- may present greater risk than those in devel- ing stocks. Initial Public Offering (IPO) risk also oped markets. The accounting and financial in- applies when companies are listed on an ex- formation on the companies in which the Com- change for the first time. IPO securities have no partments invest may be more cursory and less trading history, and the available information reliable. The risk of fraud is usually greater in related to the company may be limited. As a emerging countries than in developed countries. consequence, the prices of securities sold in Companies in which frauds are uncovered may IPOs may be highly volatile. The Fund may also be subject to large price movements and/or sus- not receive the targeted subscribed amount pension of quotation. The risk that audit firms which may impact its performance. Such in- fail to uncover accounting errors or frauds is vestments may generate substantial transaction usually larger in emerging countries than in de- costs. veloped countries. The legal environment and laws governing ownership of securities in › Interest rate risk. The risk which arises from po- emerging countries may be imprecise and do tential movements in the level and volatility of not provide the same guarantees as the laws in yields. The value of investments in bonds and developed countries, in the past there have other debt securities or derivative instruments been cases of fraudulent and falsified securi- may rise or fall sharply as interest rates fluctu- ties. Emerging markets risk includes various ate. As a general rule, the value of fixed-rate in- risks defined throughout this section such as struments will increase when interest rates fall capital repatriation restriction, counterparty, and vice-versa. In some instances, prepayments currency risk, interest rate risk, credit risk, eq- (i.e. early unscheduled return of principal) can uity risk, credit risk, liquidity risk, political risk, introduce reinvestment risk as proceeds may be fraud, audit, volatility, illiquidity as well as re- reinvested at lower rates of return and impact strictions on foreign investments risk among the performance of the Compartments. other risks. The choice of providers in some countries may be very limited and even the best-qualified providers may not offer

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guarantees comparable to those given by finan- (insufficient or inappropriate skills/competencies, loss of cial institutions and brokerage firms operating key personal, availability, health, safety, fraud/collusion in developed countries. risk, etc.) Compartment Specific Risks The set of risks attached to investment Compartments. Other risks This category lists all risks that do not belong to other The Compartments may not be able to implement its in- categories and that are not specific to a market. vestment strategy or its asset allocation and the strategy may fail to achieve their investment objective. This may › Legal risk. The risk from uncertainty due to le- cause loss of capital and income, and if applicable, in- gal actions or uncertainty in the applicability or dex tracking risk. interpretation of contracts, laws or regulations.

› Hedging risk. The risk arising from a Compart- › Regulatory and compliance risk. The risk that ment’s Class of Shares or investment being over regulations, standards or rules of professional or under hedged with regards to, but not limited conduct may be violated resulting in legal and to currency exposure and duration. regulatory sanctions, financial losses or damage to one’s reputation. › Redemption risk. The inability to meet redemptions within a contractual timeframe without se- › Concentration risk. The risk of losses due to the rious disruption of the portfolio structure or loss limited diversification in the investments made. of value for the remaining Shareholders. Com- Diversification may be sought in terms of geog- partments’ redemptions whether in cash or in raphy (economic zone, country, region, etc.), kind may impair the strategy. Swings may apply currency or sector. Concentration risk also re- to redemption and the applicable redemption lates to large positions in a single issuer relative price may differ from the net asset value per to a Compartment's asset base. Concentrated Share price at the disadvantage of the Share- investments are often more prone to political holder redeeming Shares. In crisis periods, the and economic factors and may suffer from in- risk of illiquidity may give rise to suspension of creased volatility. the calculation of the net asset value and tem- › Political risk. Political risk may arise from sud- porarily impede the right of Shareholders to re- den changes in political regime and foreign pol- deem their Shares. icy which may result in large unexpected move- › Fund liquidation risk. Liquidation risk is the in- ments in the level of currencies, repatriation ability to sell some holdings when a Compart- risk (i.e. restrictions on repatriation of funds ment is being liquidated. This is the extreme from emerging countries) and volatility risk. case of redemption risk. This may lead to increased fluctuations in the exchange rate for these countries, asset prices › Dividend distribution risk. Dividend distribu- and capital repatriation restrictions risk. In ex- tions reduce the net asset value and may erode treme cases, political changes can stem from the capital. terrorist attacks or lead to economic and armed conflicts. Some governments are implementing Operational risk The risk of loss resulting from inadequate or failed inter- policies of economic and social liberalisation but there is no assurance that these reforms nal processes, people and systems, or from external will be continued or that they will be beneficial events. Operational risk includes but is not limited to to their economies in the long term. These re- multiple risks such as: systems and process risk that forms may be challenged or slowed by political arises from systems vulnerability, insufficiency or con- or social events, or by national or international trols failure, valuation risk when an asset is overvalued armed conflicts (such as the conflict in the for- and is worth less than expected when it matures or is mer Yugoslavia). All these political risks may sold, service providers risk when service providers do not impair objectives set for a Compartment and deliver the desired level of service, execution risk when negatively impact the net asset value. an order may not be executed as desired, resulting in a › Tax risk. The risk of loss incurred by changes in loss for the Compartments or having regulatory conse- tax regimes, loss of tax status or advantages. quences, and risk surrounding the human being

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This may impact the Compartments' strategy, Depositary Bank and in respect of the acts or asset allocation and net asset value. defaults of which the Depositary Bank shall have no liability. There may be circumstances › Trading venues risk. The risk that exchanges where the Depositary Bank is relieved from lia- discontinue the trading of assets and instru- bility for the acts or defaults of its appointed ments. Suspensions and de-listings constitute third-party delegates provided that the Deposi- the main risks related to trading exchanges. The tary Bank has complied with its duties. Compartments may not be able to trade certain assets for a period of time. In addition, the Compartments may incur losses resulting from the acts or omissions of the De- › Conflict of interest risk. A situation that occurs positary Bank, or any of its third-party delegates when a service provider may disadvantage one when performing or settling transactions or party or client over another when holding multi- when transferring money or securities. More ple interests. Conflict of interest may concern generally, the Compartments are exposed to but are not limited to voting right, soft dollar risks of loss associated to the Depositary Bank policies and in some cases Securities Lending function if the Depositary Bank or a third-party Agreement. Conflicts of interest may be at the delegate fails to perform its duties (improper Compartments' disadvantage or cause legal is- performance). sues. › Disaster risk. The risk of loss caused by natural › Leverage risk. Leverage may increase the vola- and/or man-made hazards. Disasters can impact tility of the Compartment’s net asset value and economic regions, sectors and sometimes have may amplify losses which could become signif- a global impact on the economy and therefore icant and potentially cause a total loss of the the performance of the Compartment. net asset value in extreme market conditions. The extensive use of financial deriva- Specific risks This category lists all risks that are specific to certain tives instruments may lead to a considerable leverage effect. geographical areas or investment programmes.

› Custody risk. Assets of the Fund are kept in › Risk of investing in Russia. Investments in Rus- custody by the Depositary Bank and investors sia are subject to custody risk inherent to the are exposed to the risk of the Depositary Bank country's legal and regulatory framework. This not being able to fully meet its obligation to re- could cause loss of ownership of securities. cover all of the assets within a short time frame (including collateral) of the Fund in the case of › Risk of investing in the PRC. Investments in the bankruptcy of the Depositary Bank. The assets PRC are subject to restrictions by the local reg- of the Fund will be identified in the Depositary ulators and include among other things: daily Bank's books as belonging to the Fund. Securi- and market aggregate trading quotas, restricted ties held by the Depositary Bank will be segre- classes of shares, capital restrictions and own- gated from other assets of the Depositary Bank ership restrictions. The PRC authorities could which mitigates but does not exclude the risk of impose new market restrictions, capital re- non-restitution in case of bankruptcy. However, strictions as well as nationalise, confiscate and no such segregation applies to cash which in- expropriate firms or assets. On 14 November creases the risk of non-restitution in case of 2014, the Ministry of Finance, State of Admin- bankruptcy. istration of Taxation and CSRC jointly issued a notice in relation to the taxation rule on the Where securities (including collateral) are held Stock Connect under Caishui [2014] No.81 with third-party delegates, such securities may (“Notice No.81”). Under Notice No.81, Corpo- be held by such entities in client omnibus ac- rate income tax, individual income tax and counts and in the event of a default by any business tax will be temporarily exempted on such entity, where there is an irreconcilable gains derived by Hong Kong and overseas inves- shortfall of such securities, the Fund may have tors (such as the Compartments) on the trading to share that shortfall on a pro-rata basis. Secu- of China A-Shares through the Stock Connect rities may be transferred as collateral with title with effect since 17 November 2014. However, transfer to clearing brokers which therefore do Hong Kong and overseas investors (such as the not qualify as third-party delegate of the Compartments) are required to pay tax on

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dividends and/or bonus shares at the rate of approbation of the CSRC and the investment 10% which will be withheld and paid to the rel- quota is subject to the approbation of SAFE. evant authority by the listed companies. The The Investment Manager (i.e. PICTET AM Ltd) Management Company and/or Investment Man- will have the right to use his quota for multiple agers reserve the right to provide for tax on funds and Compartments. Transactions are gains of the relevant Compartments that invest dealt in RMB, in eligible RMB denominated in PRC securities thus impacting the valuation products approved by CSRC. CSRC and SAFE of the relevant Compartments. With the uncer- can at any time modify the terms and condi- tainty of whether and how certain gains on PRC tions of the programme. Please consult the securities are to be taxed, the possibility of the websites and http://www.safe.gov.cn for more laws, regulations and practice in the PRC information. Changes in quota sizes or China A- changing, and the possibility of taxes being ap- Share eligibilities could impede the relevant plied retrospectively, any provision for taxation Compartments investment strategy. made by the Management Company and/or the The is an OTC market with a Investment Managers may be excessive or inad- › CIBM risk. CIBM dominant share of the whole Chinese interbank equate to meet final PRC tax liabilities on gains market and is regulated and supervised by the derived from the disposal of PRC securities. In . Trading on the CIBM market may expose the event of insufficient provision, the tax due PBC the Compartment to higher liquidity and coun- will be charged on the Fund’s assets, and this may adversely affect them as a result. Conse- terparty risk. In order to access the CIBM market, the RQFII manager must obtain prior ap- quently, investors may be advantaged or disad- proval from the PBC as a market participant. vantaged depending upon the final outcome of The manager’s approval may be refused or with- how such gains will be taxed, the level of provi- drawn at any time, at the discretion of the PBC, sion and when they purchased and/or sold their which may limit the Compartment’s investment Shares in/from the relevant Compartments. opportunities in the instruments traded on the › QFII risk. Investments in the PRC can be made CIBM market. Investors’ attention is drawn to via a QFII programme. The programme enables the fact that clearing and settlement systems capital flows to/from the PRC within the limits on the Chinese securities market may not as yet of quotas allocated to institutional investors. In be extensively tested and are subject to in- some circumstances, the Compartment may not creased risks due to errors in assessment and be able to immediately repatriate proceeds from delays in settling transactions. sales of China A-Shares due to asset repatria- . Certain Compartments may tion restrictions imposed by local authorities. › Stock Connect risk invest and have direct access to certain eligible Such restrictions may impair the Compart- China A-Shares via the Stock Connect. The ment’s strategy and have an impact on the Shanghai-Hong Kong Stock Connect is a securi- Compartment’s performance. The QFII status is subject to the approbation of the CRSC and the ties trading and clearing linked programme developed by HKEx, SSE and ChinaClear. The investment quota is subject to the approbation Shenzhen-Hong Kong Stock Connect is a secu- of SAFE. This quota will be allocated to the In- rities trading and clearing linked programme vestment Manager (i.e. PICTET AM Ltd), who developed by HKEx, SZSE and ChinaClear. The will have the right to use it for multiple purposes. Transactions are dealt in USD, in eligible aim of Stock Connect is to achieve mutual stock market access between the PRC and RMB denominated products approved by CSRC. CSRC and SAFE can at any time modify the Hong Kong. terms and conditions of the programme. The Stock Connect comprises a Northbound Changes in quota sizes or China A-Share eligi- Trading Link (for investment in China A-Shares) bilities could impede the relevant Compart- by which certain Compartments may be able to ments’ investment strategies. place orders to trade eligible shares listed on SSE and SZSE. › RQFII risk. Investments in the PRC can be made via a RQFII programme. The programme Under the Stock Connect, overseas investors enables capital flows to/from China within the (including the Compartments) may be allowed, limits of regional quotas allocated to offshore subject to rules and regulations issued / regions. The RQFII status is subject to the amended from time to time, to trade certain

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SSE Securities and certain SZSE Securities Securities through Northbound trad- through the Northbound Trading Link. The list ing should maintain the SSE and of eligible securities may be changed subject to SZSE Securities with their brokers’ the review and approval by the relevant PRC or custodians’ stock accounts with regulators from time to time. the Central Clearing and Settlement System operated by HKSCC for the In addition to the risks associated with invest- clearing securities listed or traded ments in China and risks related to investments on SEHK. Further information on in RMB, investments through the Stock Con- the custody set-up relating to the nect are subject to additional risks, namely, re- Stock Connect is available upon restrictions on foreign investments, trading ven- quest at the registered office of the ues risk, operational risk, restrictions on selling Fund. imposed by front-end monitoring, recalling of eligible stocks, settlement risk, custody risk,  Operational risk. The Stock Connect nominee arrangements in holding China A- provides a new channel for investors Shares, tax and regulatory risks. from Hong Kong and overseas, such as the Compartments, to access the  Differences in trading day. The China stock market directly. The Stock Connect only operates on Stock Connect is premised on the days when both the PRC and Hong functioning of the operational sys- Kong markets are open for trading tems of the relevant market partici- and when banks in both markets pants. Market participants are able are open on the corresponding set- to participate in this programme tlement days. So, it is possible that subject to meeting certain infor- there are occasions when it is a nor- mation technology capability, risk mal trading day for the PRC market management and other require- but Hong Kong investors (such as ments as may be specified by the the Compartments) cannot carry out relevant exchange and/or clearing any China A-Shares trading, The house. It should be appreciated Compartments may be subject to a that the securities regimes and le- risk of price fluctuations in China gal systems of the two markets dif- A-Shares during the time when the fer significantly and in order for the Stock Connect is not trading as a trial programme to operate, market result. participants may need to address is-  Restrictions on selling imposed by sues arising from the differences on front-end monitoring. PRC regula- an on-going basis. Further, the tions require that before an investor “connectivity” in the Stock Connect sells any share, there should be suf- programme requires routing of or- ficient shares in the account; other- ders across the border. This re- wise SSE or SZSE will reject the quires the development of new in- sell order concerned. SEHK will formation technology systems on carry out pre-trade checking on the part of the SEHK and exchange China A-Shares sell orders of its participants (i.e. a new order rout- participants (i.e. the stock brokers) ing system (“China Stock Connect to ensure there is no over-selling. System”) to be set up by SEHK to which exchange participants need  Clearing settlement and custody to connect). There is no assurance risks. The China A-Shares traded that the systems of the SEHK and through Stock Connect are issued in market participants will function scriptless form, so investors, such properly or will continue to be as the relevant Compartments, will adapted to changes and develop- not hold any physical China A- ments in both markets. In the event Shares. Hong Kong and overseas in- that the relevant systems failed to vestors, such as the Compartments, function properly, trading in both who have acquired SSE and SZSE

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markets through the programme Shares. To the extent that HKSCC could be disrupted. The relevant is deemed to be performing safe- Compartments' ability to access the keeping functions with respect to China A-Shares market (and hence assets held through it, it should be to pursue their investment strategy) noted that the Custodian and the will be adversely affected. relevant Compartments will have no legal relationship with HKSCC and  Nominee arrangements in holding no direct legal recourse against HKSCC is the China A-Shares. HKSCC in the event that a Com- “nominee holder” of the SSE and partment suffers losses resulting SZSE securities acquired by over- from the performance or insolvency seas investors (including the rele- of HKSCC. vant Compartments) through the Stock Connect. The CSRC Stock  Investor compensation. Investments Connect rules expressly provide that of the relevant Compartments investors such as the Compartments through Northbound trading under enjoy the rights and benefits of the the Stock Connect will not be cov- SSE and SZSE securities acquired ered by Hong Kong’s Investor Com- through the Stock Connect in ac- pensation Fund. Hong Kong’s Inves- cordance with applicable laws. tor Compensation Fund is estab- However, the courts in the PRC may lished to pay compensation to in- consider that any nominee or custo- vestors of any nationality who suffer dian as registered holder of SSE pecuniary losses as a result of de- and SZSE securities would have full fault of a licensed intermediary or ownership thereof, and that even if authorised financial institution in the concept of beneficial owner is relation to exchange-traded prod- recognised under PRC law those ucts in Hong Kong. Since default SSE and SZSE securities would matters in Northbound trading via form part of the pool of assets of the Stock Connect do not involve such entity available for distribution products listed or traded in SEHK to creditors of such entities and/or or Hong Kong Futures Exchange that a beneficial owner may have no Limited, they will not be covered by rights whatsoever in respect thereof. the Investor Compensation Fund. Consequently, the relevant Com- On the other hand, since the rele- partments and the Custodian Bank vant Compartments are carrying out cannot ensure that the Compart- Northbound trading through securi- ments' ownership of these securities brokers in Hong Kong but not ties or title thereto is assured in all PRC brokers, therefore they are not circumstances. Under the rules of protected by the China Securities the Central Clearing and Settlement Investor Protection in the PRC. System operated by HKSCC for the  Trading costs. In addition to paying clearing of securities listed or trading fees and stamp duties in traded on SEHK, HKSCC as nomi- connection with China A-Share nee holder shall have no obligation trading, the relevant Compartments to take any legal action or court pro- may be subject to portfolio fees, ceeding to enforce any rights on be- dividend tax and tax concerned with half of the investors in respect of income arising from stock transfers. the SSE and SZSE securities in the PRC or elsewhere. Therefore, alt-  Regulatory risk. The CSRC Stock hough the relevant Compartments’ Connect rules are departmental reg- ownership may be ultimately recog- ulations having legal effect in the nised, these Compartments may PRC. However, the application of suffer difficulties or delays in en- such rules is untested, and there is forcing their rights in China A- no assurance that PRC courts will

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recognise such rules, e.g. in liqui- Under the Northbound Trading Link, eligi- dation proceedings of PRC compa- ble foreign investors are required to appoint nies. the CFETS or other institutions recognised by the PBC as registration agents to apply The Stock Connect is novel in na- for registration with the PBC. ture and is subject to regulations promulgated by regulatory authori- Pursuant to the prevailing regulations in ties and implementation rules made Mainland China, an offshore custody agent by the stock exchanges in the PRC recognised by the Hong Kong Monetary Au- and Hong Kong. Further, new regu- thority (currently, the Central Money- lations may be promulgated from markets Unit) shall open omnibus nominee time to time by the regulators in accounts with the onshore custody agent connection with operations and recognised by the PBC (currently, the China cross-border legal enforcement in Securities Depository & Clearing Co., Ltd connection with cross-border trades and Interbank Clearing Company Limited). under the Stock Connect. All bonds traded by eligible foreign investors will be registered in the name of Cen- The regulations are untested so far tral Moneymarkets Unit, which will hold and there is no certainty as to how such bonds as a nominee owner. they will be applied. Moreover, the current regulations are subject to For investments via Bond Connect, the rel- change. There can be no assurance evant filings, registration with PBOC and that the Stock Connect will not be account opening have to be carried out via abolished. The relevant Compart- an onshore settlement agent, offshore cus- ments which may invest in the PRC tody agent, registration agent or other third markets through Stock Connect may parties (as the case may be). As such, a be adversely affected as a result of Compartment is subject to the risks of de- such changes. fault or errors on the part of such third parties.  Risks associated with the Small and Medium Enterprise board (SME) Investing in the CIBM via Bond Connect is and/or ChiNext market. SZSE offers also subject to regulatory risks. the Compartment to access mainly The relevant rules and regulations on these to small and medium capitalisation regimes are subject to change which may enterprises. Investing in such com- have potential retrospective effect. In the panies magnifies the risks listed in event that the relevant Mainland Chinese the Risk Factor of the concerned authorities suspend account opening or Compartment. trading on the CIBM, a Compartment's abil- › Bond Connect risk ity to invest in the CIBM will be adversely Bond Connect is a new initiative launched affected. In such event, a Compartment's in July 2017 for mutual bond market ac- ability to achieve its investment objective cess between Hong Kong and Mainland will be negatively affected. China established by CFETS, China Cen- On 22 November 2018, China’s Ministry of tral Depository & Clearing Co., Ltd, Shang- Finance and the State Administration of hai Clearing House, and HKEx and Central taxation indicated in their Circular 108 that Moneymarkets Unit. a three-year corporate income tax ("CIT") Under the prevailing regulations in Main- and value added tax ("VAT") exemption, land China, eligible foreign investors will be starting on 7 November 2018, would apply allowed to invest in the bonds circulated in to foreign institutional investors on bond in- the CIBM through the northbound trading terest income derived from the Chinese of Bond Connect ("Northbound Trading bond market. Capital gains realized on Chi- Link"). There will be no investment quota nese bonds are also temporarily exempt for Northbound Trading Link. from CIT and VAT for the time being. There is however no certainty that these

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exemptions will be continuously applied in investments. Although Repurchase Agreements the future (and after the expiry of the 3-year are by their nature fully collateralised, the Com- exemption period for bond interest income partment could incur a loss if the value of the referred to above) securities sold has increased in value relative to the value of the cash or margin held by the

Compartment. In a reverse repurchase transac- › Chinese currency exchange rate risk. RMB can tion, the Compartment could incur a loss if the be traded onshore (in CNY in mainland China) value of the purchased securities has decreased and offshore (in CNH outside mainland China, in value relative to the value of the cash or mar- mainly in Hong Kong). Onshore RMB (CNY) is gin held by the Compartment. not a free currency and is controlled by PRC authorities. The Chinese RMB is traded both di- › Sukuk risk. Sukuk are mainly issued by issuers rectly within China (code CNY) and outside the of emerging countries and the relevant Com- country, primarily in Hong Kong (code CNH). partments bear the related risks. Sukuk prices The currency in question is one and the same. are mostly driven by the interest rate market The onshore RMB (CNY), traded directly within and react like fixed-income investments to China, is not freely convertible, and is subject changes in the interest rate market. In addition, to exchange controls and a number of require- the issuers may not be able or willing to repay ments made by the Chinese government. The the principal and/or the return in accordance offshore RMB (CNH), traded outside China, is with the term scheduled due to external or po- free-floating and subject to the impact of pri- litical factors/events. Sukuk holders may also be vate demand on the currency. It may be that affected by additional risks such as unilateral the exchange rates traded between a currency rescheduling of the payment calendar and lim- and the CNY or CNH, or in “non-deliverable for- ited legal recourses against the issuers in case ward” transactions, are different. As a result, of failure or delay in repayment. Sukuk issued the Compartment may be exposed to greater by governmental or government-related entities currency exchange risks. Trading restrictions on bear additional risks linked to such issuers, in- CNY may limit currency hedging or result in including but not limited to political risk. effective hedges. › Financial derivative instruments risk. Derivative Product / Techniques risks instruments are contracts whose price or value This category lists all risks that related to investment depends on the value of one or multiple under- products or technics. lying assets or data as defined in standardized or tailored contracts. Assets or data may in- › Securities Lending Agreement risk. The risk of clude but are not limited to equity, index, com- loss if the borrower (i.e. the counterparty) of se- modity and fixed-income prices, currency pair curities loaned by the Fund/Compartment de- exchange rates, interest rates, weather condi- faults on payment, there is a risk of delayed re- tions as well as, and when applicable, volatility covery (which may limit the Fund/Compart- or credit quality related to these assets or data. ment’s ability to meet its commitments) or risk Derivative instruments can be very complex by of loss of rights on the collateral held. This risk, nature and subject to valuation risk. Derivatives however, is mitigated by the solvency analysis instruments can be exchange traded (ETD) or of the borrower performed by the Pictet Group. dealt over-the-counter (OTC). Depending on the The Securities Lending Agreements are also nature of instruments, counterparty risk can ac- subject to the risk of conflict of interest be- crue to one or both parties engaged in an OTC tween the Fund and another entity in the Pictet contract. A counterparty may not be willing or Group, including the Agent providing services able to unwind a position in a derivative instru- related to the Securities Lending Agreements. ment and this inability to trade may cause the relevant Compartments to be over-exposed to a › Repurchase and Reverse Repurchase Agree- counterparty among other things. Derivative in- ment risk. The risks associated with Repurchase struments may have a considerable leverage ef- and Reverse Repurchase Agreements arise if fect, and due to their volatility, some instru- the counterparty to the transaction defaults or ments, such as warrants, present an above-aver- goes bankrupt and the Compartment experi- age economic risk. The use of derivative instru- ences losses or delays in recovering its ments involves certain risks that could have a

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negative effect on the performance of the Com- › Structured Finance Securities risk. Structured partments. While the Compartments expect that finance securities include, but are not limited the returns on a synthetic security will generally to, asset-backed securities, asset-backed com- reflect those of the related investment, as a re- mercial papers, credit-linked notes and portfolio sult of the terms of the synthetic security, and credit-linked notes. Structured finance securi- the assumption of the credit risk of the applica- ties may sometimes have embedded derivatives. ble counterparty, a synthetic security may have, Structure finance securities may have different when applicable, a different expected return, a degrees of risk depending on the characteristics different (and potentially greater) probability of of the security and the risk of the underlying as- default, a different (and potentially greater) ex- set or pool of assets. In comparison to the un- pected loss characteristic following a default, derlying asset or pool of assets, structured fi- and a different (and potentially lower) expected nance securities may have greater liquidity, recovery following default. Upon default on a credit and market risk. Structured finance secu- related investment, or in certain circumstances, rities are defined in the section "Investment Re- default, or other actions by an issuer of a restrictions" of the prospectus. lated investment, the terms of the relevant synthetic security may permit, or require the coun- › Contingent Convertibles instruments risk. Cer- terparty to satisfy its obligations under the syn- tain Compartments may invest in Contingent thetic security by delivering to the Compart- Convertible Bonds (sometimes referred to as ments the investment or an amount equal to “CoCo Bonds”). CoCo Bonds are hybrid finan- the then current market value of the invest- cial instruments issued by banks that convert ment. In addition, upon maturity, default, ac- into equity or suffer a write-down of the face celeration, or any other termination (including a value upon the appearance of a trigger event. put or call) of the synthetic security, the terms Trigger events can arise mainly due to ratios re- of the synthetic security may permit, or require lated to insufficient Tier1 capital or other capi- the counterparty to satisfy its obligations under tal ratios. Additionally, a regulatory authority the synthetic security by delivering to the Com- advice on the issuer not being a going concern partments’ securities, other than the related in- could also be a trigger event. Under the terms vestment or an amount different to the then of a Contingent Convertible Bond, certain trig- current market value of the investment. In addi- ger events, including events under the control tion to the credit risks associated with holding of the management of the Contingent Converti- investments, with respect to some synthetic se- ble Bond’s issuer, could cause the permanent curities, the Compartments will usually have a write-down to zero of principal investment contractual relationship with the relevant coun- and/or accrued interest, or a conversion to eq- terparty only, and not with the underlying issuer uity. These trigger events may include (i) a de- of the relevant investment. The Compartment duction in the issuing bank’s Core Tier 1/Com- generally will not have the right to directly en- mon Equity Tier 1 (CT1/CET1) ratio (or other force compliance by the issuer with the terms capital ratios) below a pre-set limit, (ii) a regu- of the investment, or any rights of set-off latory authority, at any time, making a subjec- against the issuer, nor have any voting rights tive determination that an institution is “nonvi- with respect to the investment. The main types able”, i.e., a determination that the issuing of derivative financial instruments include but bank requires public sector support in order to are not limited to Futures, Forwards, Swaps, prevent the issuer from becoming insolvent, Options, on underlying such as equity, interest bankrupt, unable to pay a material part of its rates, credit, foreign exchange rates and Com- debts as they fall due or otherwise carry on its modity. Example of Derivatives include but are business and requiring or causing the conver- not limited to Total Return Swaps, Credit De- sion of the Contingent Convertibles Bonds into fault Swaps, Swaptions, Interest Rate Swaps, equity in circumstances that are beyond the Variance Swaps, Volatility Swaps, Equity Op- control of the issuer or (iii) a national authority tions, Bond Options and Currency Options. De- deciding to inject capital. The attention of in- rivative financial products and instruments are vestors investing in Compartments that are al- defined in the section "Investment restrictions" lowed to invest in Contingent Convertibles of the prospectus. Bonds is drawn to the following risks linked to an investment in this type of instruments.

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 Trigger level risk. Trigger levels dif- Contingent Convertible Bonds will fer and determine exposure to con- suffer losses ahead of equity hold- version risk depending on the CET1 ers, e.g., when a high trigger princi- distance to the trigger level. The pal write-down Contingent Converti- conversion triggers are disclosed in ble Bond is activated. This cuts the prospectus of each issuance. against the normal order of capital The amount of CET1 varies depend- structure hierarchy where equity ing on the issuer while trigger levels holders are expected to suffer the differ depending on the specific first loss. This is less likely with a terms of issuance. The trigger could low trigger Contingent Convertible be activated either through a mate- Bond when equity holders will al- rial loss in capital as represented in ready have suffered loss. Moreover, the numerator or an increase in risk high trigger Tier 2 Contingent Con- weighted assets as measured in the vertible Bonds may suffer losses not denominator. at the point of gone concern but conceivably in advance of lower  Write-down, conversion and coupon trigger AT1 Contingent Convertible All Contingent cancellation risk. Bonds and equity. Convertible Bonds (Additional Tier 1 and Tier 2) are subject to conver-  Call extension risk. Most Contingent sion or write down when the issuing Convertible Bonds are issued as bank reaches the trigger level. Com- perpetual instruments, callable at partments could suffer losses repre-determined levels only with the lated to write downs or be nega- approval of the competent author- tively affected by the unfavourable ity. It cannot be assumed that the timing of conversion to equity. Ad- perpetual Contingent Convertible ditionally, coupon payments on Ad- Bonds will be called on call date. ditional Tier 1 (AT1) Contingent Perpetual Contingent Convertible Convertible Bonds are entirely dis- Bonds are a form of permanent cap- cretionary and may be cancelled by ital. The investor may not receive the issuer at any point, for any rea- return of principal if expected on son, and for any length of time, in a call date or indeed at any date. going concern situation. The can-  Unknown risk. The structure of the cellation of coupon payments on instruments is innovative yet un- AT1 Contingent Convertible Bonds tested. In a stressed environment, does not amount to an event of de- when the underlying features of fault. Cancelled payments do not these instruments will be put to the accumulate and are instead written test, it is uncertain how they will off. This significantly increases un- perform. In the event a single issuer certainty in the valuation of AT1 activates a trigger or suspends cou- Contingent Convertible Bonds and pons, potential price contagion and may lead to mispricing of risk. AT1 volatility to the entire asset class is Contingent Convertible Bonds hold- possible. This risk may in turn be ers may see their coupons cancelled reinforced depending on the level of while the issuer continues to pay underlying instrument arbitrage. dividends on its common equity and There exists uncertainty in the con- variable compensation to its work- text of a supervisory decision estab- force. lishing when the point of non-viabil-  Capital structure inversion risk. ity has been reached as well as in Contrary to classic capital hierar- the context of a statutory bail-in set chy, holders of Contingent Converti- up under the new Bank Recovery ble Bonds may suffer a loss of capi- and Resolution Directive. tal when equity holders do not. In certain scenarios, holders of

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 Sector concentration risk. Contin- loans, auto loans, residential and commercial gent Convertible Bonds are issued mortgage loans, collateralised mortgage obliga- by banking/insurance institutions. If tions and collateralised debt obligations), a Compartment invests significantly agency mortgage pass-through securities and in Contingent Convertible Bonds its covered bonds. The obligations associated with performance will depend to a these securities may be subject to greater greater extent on the overall condi- credit, liquidity and interest rate risk compared tion of the financial services indus- to other debt securities such as government is- try than a Compartment following a sued bonds. ABS and MBS are securities that more diversified strategy. entitle the holders thereof to receive payments that are primarily dependent upon the cash flow  Liquidity risk. In certain circum- arising from a specified pool of financial assets stances finding a ready buyer for such as residential or commercial mortgages, Contingent Convertible Bonds may motor vehicle loans or credit cards. ABS and be difficult and the seller may have MBS are often exposed to extension and pre- to accept a significant discount to payment risks that may have a substantial im- the expected value of the bond in pact on the timing and size of the cash flows order to sell it. paid by the securities and may negatively im-  Valuation risk. Contingent Converti- pact the returns of the securities. The average ble Bonds often have attractive life of each individual security may be affected yields which may be viewed as a by a large number of factors such as the exist- complexity premium. Relative to ence and frequency of exercise of any optional more highly rated debt issues of the redemption and mandatory prepayment, the same issuer or similarly rated debt prevailing level of interest rates, the actual de- issues of other issuers, Contingent fault rate of the underlying assets, the timing of Convertible Bonds tend to compare recoveries and the level of rotation in the under- favourably from a yield standpoint. lying assets. The risk of conversion or, for AT1 › Depositary receipts risk. Depositary receipts Contingent Convertible Bonds, cou- (such as ADRs, GDRs and EDRs) are instru- pon cancellation, may not be fully ments that represent shares in companies trad- reflected in the price of Contingent ing outside the markets in which the depositary Convertible Bonds. The following receipts are traded. Accordingly, whilst the de- factors are important in the valua- positary receipts are traded on Recognised Ex- tion of Contingent Convertible changes, there may be other risks associated bonds: the probability of a trigger with such instruments to consider- for example being activated, the extent and the shares underlying the instruments may be probability of any losses upon trig- subject to political, inflationary, exchange rate ger conversion (not only from write- or custody risks. downs but also from unfavourably timed conversion to equity) and (for › Real Estate Investment Trusts (REITs) risk. AT1 Contingent Convertible Bonds) There are special risk considerations associated the likelihood of cancellation of with investing in the real estate industry securi- coupons. Individual regulatory re- ties such as Real Estate Investment Trusts quirements relating to the capital (REIT) and the securities of companies princi- buffer, the issuers’ future capital pally engaged in the real estate industry. These position, issuers’ behaviour in rela- risks include: the cyclical nature of real estate tion to coupon payments on AT1 values, risks related to general and local eco- Contingent Convertible Bonds, and nomic conditions, overbuilding and increased any risks of contagion are discre- competition, increases in property taxes and op- tionary and/or difficult to estimate. erating expenses, demographic trends and variations in rental income, changes in zoning laws, › ABS and MBS risk. Certain Compartments may casualty or condemnation losses, environmental have exposure to a wide range of asset-backed risks, regulatory limitations on rents, changes in securities (including asset pools in credit card neighbourhood values, related party risks,

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changes in the appeal of properties to tenants, economic or monetary policies of increases in interest rates and other real estate the countries concerned, can have capital market influences. Generally, increases an effect on the value of an invest- in interest rates will increase the costs of ob- ment represented by a UCI/UCITS taining financing, which could directly and indi- in which the Compartment invests; rectly decrease the value of a Fund investing in in addition, it should be noted that the Real Estate Industry. the net asset value per Share of the Compartment can fluctuate in the Commodity price risk. Prices of commodities › wake of the net asset value of the (including precious metals) may vary in terms of UCI/UCITS in question, in particu- supply and demand, as well as political, com- lar where the UCI/UCITS funds that mercial and/or environmental events. Conse- invest mainly in equities are con- quently, the investor may be subject to signifi- cerned, due to the fact that they cant volatility linked to this class of assets. present volatility greater than that › Risks linked to investments in other UCIs. The of UCI/UCITS funds that invest in investment of the Compartment in other UCIs or bonds and/or other liquid financial UCITS involves the following risks: assets.  Fluctuations in the currency of the  Nonetheless, the risks linked to in- country in which that UCI/UCITS vestments in other UCI/UCITS are fund invests, or the regulations gov- limited to the loss of the investment erning exchange control, the appli- made by the Compartment. cation of tax regulations of the various countries, including withholding, and changes in governmental,

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ANNEX 1: FIXED -INCOM E COMPARTMENT S

This annex will be updated to account for any change in an existing Compartment or when a new Compartment is created.

1. PICTET – EUR BONDS In addition, the Compartment may invest up to 10% of Typical investor profile its net assets in UCITS and other UCIs, including other The Compartment is an actively managed investment ve- Compartments of the Fund pursuant to Article 181 of hicle for investors: the 2010 Act.

› Who wish to invest in fixed-income instruments The Compartment may also invest up to one-third of its denominated in euros. assets in money market instruments.

› Who seek a stable saving strategy and thus The Compartment may also invest in structured prod- have some aversion to risk. ucts, such as bonds or other transferable securities Investment policy and objectives whose returns are linked to the performance of an index, This Compartment invests at least two-thirds of its as- transferable securities or a basket of transferable securi- sets in a diversified portfolio of bonds and convertible ties, or an undertaking for collective investment, for ex- bonds, within the limits allowed by the investment re- ample. strictions. These investments may be made in all mar- The Compartment may enter into Securities Lending kets while seeking capital growth in the reference cur- Agreements and Repurchase and Reverse Repurchase rency. Agreements in order to increase its capital or its income A minimum of two-thirds of its total assets/ total wealth or to reduce its costs or risks. will be denominated in euros. The Compartment may use derivative techniques and in- Investments in convertible bonds (including contingent struments for efficient management, within the limits convertible bonds (“CoCo Bonds”)) may not exceed 20% specified in the investment restrictions. Specifically, the of the Compartment’s net assets. Compartment may conduct credit default swaps. The Compartment may also invest up to 20% of its net The investment process integrates ESG criteria based on assets in bonds and other debt securities denominated proprietary and third-party research to evaluate invest- in RMB through (i) the QFII quota granted to an entity ment risks and opportunities. When selecting the Com- of the Pictet Group (ii) the RQFII quota granted to an partment’s investments, securities of issuers with low entity of the Pictet Group and/or (iii) Bond Connect. ESG characteristics may be purchased and retained in Investments in China may be performed, inter alia, on the the Compartment’s portfolio China Interbank Bond Market (“CIBM”) directly or Reference index: through the QFII or the RQFII quota granted to the Man- Bloomberg Barclays Euro-Aggregate (EUR). Used for risk agers or through Bond Connect. Investments in China monitoring, performance objective and performance may also be performed on any acceptable securities trad- measurement. ing programmes which may be available to the Compart- ment in the future as approved by the relevant regulators The Compartment is designed to offer performance that from time to time. is likely to be significantly different from that of the benchmark. The Compartment may be exposed to non-investment grade debt securities (including distressed and defaulted securities for up to 10% of its net assets).

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Exposure to total return swaps, Securities Lending › Repurchase and reverse repurchase agreement Agreements, Reverse Repurchase Agreements and Re- risk purchase Agreements › Financial derivative instruments risk By way of derogation to the maximum exposure referred to in the general part of the Prospectus, no more than › Structured Finance Securities risk 20% of the Compartment’s net assets will be subject to › Contingent Convertibles instruments risk total return swaps. › Leverage risk By way of derogation to the maximum exposure referred The capital invested may fluctuate up or down, and in- to in the general part of the Prospectus, no more than vestors may not recover the entire value of the capital 30% of the Compartment’s net assets will be subject to initially invested. Reverse Repurchase Agreements. Risk management method: The Compartment does however not expect to be ex- Absolute value-at-risk approach. posed to Securities Lending Agreements and Reverse Repurchase Agreements. Expected leverage: 250% The expected level of exposure to total return swaps Depending on market conditions, the leverage may be amounts to 5% of the Compartment’s net assets. greater.

The expected level of exposure to Repurchase Agree- Leverage calculation method: ments amounts to 5% of the Compartment’s net assets. Sum of notional amounts.

Risk factors Managers: The risks listed below are the most relevant risks of the PICTET AM S.A., PICTET AM Ltd Compartment. Investors should be aware that other risks Reference currency of the Compartment: may also be relevant to the Compartment. Please refer EUR to the section "Risk Considerations" for a full description of these risks. Cut-off time for receipt of orders Subscription › Counterparty risk By 12:00 noon on the relevant Valuation Day.

› Collateral risk Redemption › Credit risk By 12:00 noon on the relevant Valuation Day. › High yield investment risk Switch The more restrictive time period of the two Compart- › Distressed and defaulted debt securities risk ments concerned. › Credit rating risk Frequency of net asset value calculation › Interest rate risk The net asset value will be determined as at each Bank- ing Day (the “Valuation Day”). › Emerging market risk › Risk of investing in the PRC However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › QFII risk value that cannot be used for trading purposes due to › RQFII risk closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of › Chinese currency exchange rate risk the assets. › CIBM risk For further information, please refer to our website › Bond Connect Risk www.assetmanagement.pictet. › Securities Lending Agreement Risk

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Calculation Day Day”). The calculation and publication of the net asset value as Payment value date for subscriptions and redemptions at a Valuation Day will take place on the Week Day fol- Within 3 Week Days following the applicable Valuation lowing the relevant Valuation Day (the “Calculation Day.

PICTET – EUR BOND

Type Initial min. Fees (max %) * of Management Service** Depositary Share Bank I EUR 1 million 0.60% 0.30% 0.05% A *** 0.60% 0.30% 0.05% P − 0.90% 0.30% 0.05% R − 1.25% 0.30% 0.05% Z − 0% 0.30% 0.05% J EUR 50 million 0.45% 0.30% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. ***Please refer to www.assetmanagement.pictet

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2. PICTET – USD GOVERNMENT BONDS Under exceptional circumstances, if the manager con- Typical investor profile siders this to be in the best interest of the Shareholders, The Compartment is an actively managed investment ve- the Compartment may hold up to 100% of its net assets hicle for investors: in liquidities as amongst others cash deposits, money › Who wish to invest in fixed-income instruments market funds (within the above-mentioned 10% limit) denominated in US dollars. and money market instruments. › Who seek a stable saving strategy and thus The investment process integrates ESG criteria based on have some aversion to risk. proprietary and third-party research to evaluate investment risks and opportunities. When selecting the Com- Investment policy and objectives This Compartment invests mainly in a diversified portfo- partment’s investments, securities of issuers with low lio of bonds and other debt securities denominated in ESG characteristics may be purchased and retained in US dollars issued or guaranteed by national or local gov- the Compartment’s portfolio. ernments, or by supranational organisations, within the Reference index: limits allowed by the investment restrictions. JP Morgan US Government Bond (USD). Used for risk monitoring, performance objective and performance The investments not denominated in US dollars will measurement. generally be hedged in order to avoid exposure to a currency other than the US dollar. The Compartment is designed to offer performance that In addition, the Compartment may invest up to 10% of is likely to be fairly similar to that of the benchmark. its net assets in UCITS and other UCIs, including other Compartments of the Fund pursuant to Article 181 of Exposure to total return swaps, Securities Lending the 2010 Act. Agreements, Reverse Repurchase Agreements and Re- purchase Agreements The Compartment may enter into Securities Lending By way of derogation to the maximum exposure referred Agreements and Repurchase and Reverse Repurchase to in the general part of the Prospectus, no more than Agreements in order to increase its capital or its income 20% of the Compartment’s net assets will be subject to or to reduce its costs or risks. total return swaps.

For efficient management and within the limits of the By way of derogation to the maximum exposure referred investment restrictions set out in the Prospectus, the to in the general part of the Prospectus, no more than Compartment may use any type of financial derivative 30% of the Compartment’s net assets will be subject to traded on a regulated and/or over-the-counter (OTC) Reverse Repurchase Agreements. market if obtained from a leading financial institution The Compartment does however not expect to be ex- that specialises in these types of transactions. In partic- posed to total return swap, Repurchase Agreements, Se- ular, the Compartment may, among other investments curities Lending Agreements and Reverse Repurchase but not exclusively, invest in warrants, futures, options, Agreements. swaps (such as total return swaps, contracts for difference and credit default swaps) and futures contracts Risk factors with underlying assets compliant with the 2010 Act and The risks listed below are the most relevant risks of the the Compartment’s investment policy, as well as curren- Compartment. Investors should be aware that other risks cies (including non-deliverable forwards), interest rates, may also be relevant to the Compartment. Please refer transferable securities, a basket of transferable securi- to the section "Risk Considerations" for a full description ties, indexes, and undertakings for collective invest- of these risks. ment. › Counterparty risk Specifically, the Compartment may conduct credit de- › Collateral risk fault swaps.

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› Credit risk Redemption By 3:00 pm on the relevant Valuation Day. › Credit rating risk Switch › Interest rate risk The more restrictive time period of the two Compart- › Concentration risk ments concerned.

Risk management method: For further information, please refer to our website Absolute value-at-risk approach. www.assetmanagement.pictet.

Expected leverage: Calculation Day 50%. The calculation and publication of the net asset value as Depending on market conditions, the leverage may be at the Valuation Day will take place on the Week Day fol- greater. lowing the relevant Valuation Day (the “Calculation Leverage calculation method: Day”). Sum of notional amounts. Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation Day. Manager: PICTET AM S.A., PICTET AM Ltd

Reference currency of the Compartment: USD

Cut-off time for receipt of orders Subscription By 3:00 pm on the relevant Valuation Day.

PICTET – USD GOVERNMENT BONDS Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.30% 0.15% 0.20% A *** 0.30% 0.15% 0.20% P − 0.60% 0.15% 0.20% R − 0.90% 0.15% 0.20% Z − 0% 0.15% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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3. PICTET – EUR CORPORATE BONDS are, or offer exposure to, equities or similar securities.

Typical investor profile By analogy, investments in undertakings for collective The Compartment is an actively managed investment ve- investment whose main objective is to invest in the as- hicle for investors: sets listed above are also included in the 10% limit.

› Who wish to invest in high quality fixed-income The Compartment may also invest up to one-third of its securities denominated in EUR, issued by “in- assets in money market instruments. vestment grade” companies. The Compartment may also invest in structured prod- Who have some aversion to risk. › ucts, such as bonds or other transferable securities Investment policy and objectives whose returns are linked to the performance of an index, This Compartment invests at least two-thirds of its as- transferable securities or a basket of transferable securi- sets without geographic limitation in a diversified portfo- ties, or an undertaking for collective investment, for ex- lio of bonds and convertible bonds issued by private ample. companies, within the limits allowed by the investment The Compartment may enter into Securities Lending restrictions. Agreements and Repurchase and Reverse Repurchase Investments in convertible bonds (including contingent Agreements in order to increase its capital or its income convertible bonds (“CoCo Bonds”)) will not exceed 20% or to reduce its costs or risks. of the Compartment’s net assets. The Compartment may use derivative techniques and in- Investments will offer significant liquidity and will be struments for efficient management, within the limits rated at least B3 by Moody’s and/or B- by Standard & specified in the investment restrictions. Specifically, the Poor’s or, when there is no Moody’s or Standard & Compartment may conduct credit default swaps. Poor’s rating, be of equivalent quality based on the The investment process integrates ESG criteria based on manager’s analysis. Investments whose rating is less proprietary and third-party research to evaluate invest- than Moody’s Baa3 or Standard & Poor’s BBB- or equiv- ment risks and opportunities. When selecting the Com- alent quality based on the manager’s analysis will not partment’s investments, securities of issuers with low exceed 25% of the net assets of the Compartment, pro- ESG characteristics may be purchased and retained in vided that the exposure to an issuer of that quality does the Compartment’s portfolio. not exceed 1.5% of the Compartment’s net assets. Reference index: Using credit risk analysis of companies and their sec- Bloomberg Barclays Euro-Aggregate Corporate (EUR). tors, the Compartment aims to generate a return greater Used for portfolio composition, risk monitoring, perfor- than that of government bonds. Investments in govern- mance objective and performance measurement. ment bonds, generally those issued by OECD member countries, may nevertheless be conducted when re- The Compartment is designed to offer performance that quired by market conditions. is likely to be somewhat similar to that of the benchmark. A minimum of two-thirds of its total assets/ total wealth will be denominated in euros. Exposure to total return swaps, Securities Lending In addition, the Compartment may invest up to 10% of Agreements, Reverse Repurchase Agreements and Re- its net assets in UCITS and other UCIs, including other purchase Agreements Compartments of the Fund pursuant to Article 181 of By way of derogation to the maximum exposure referred the 2010 Act. to in the general part of the Prospectus, no more than 20% of the Compartment’s net assets will be subject to The Compartment will not invest more than 10% of its total return swaps. assets in shares or any other similar security, derivative instruments (including warrants) and/or structured prod- By way of derogation to the maximum exposure referred ucts (in particular convertible bonds) whose underliers to in the general part of the Prospectus, no more than

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30% of the Compartment’s net assets will be subject to greater. Reverse Repurchase Agreements. Leverage calculation method: The Compartment does however not expect to be ex- Sum of notional amounts. posed to total return swaps, Securities Lending Agree- Managers: ments, and Reverse Repurchase Agreements. PICTET AM S.A., PICTET AM Ltd

The expected level of exposure to Repurchase Agree- Reference currency of the Compartment: ments amounts to 5% of the Compartment’s net assets. EUR

Risk factors Cut-off time for receipt of orders The risks listed below are the most relevant risks of the Subscription Compartment. Investors should be aware that other risks By 3:00 pm on the relevant Valuation Day. may also be relevant to the Compartment. Please refer Redemption to the section "Risk Considerations" for a full description By 3:00 pm on the relevant Valuation Day. of these risks. Switch › Counterparty risk The more restrictive time period of the two Compart- › Collateral risk ments concerned. › Credit risk Frequency of net asset value calculation The net asset value will be determined as at each Bank- › Credit rating risk ing Day (the “Valuation Day”). › Interest rate risk However, the Board of Directors reserves the right not to › Securities Lending Agreement Risk calculate the net asset value or to calculate a net asset › Repurchase and reverse repurchase agreement value that cannot be used for trading purposes due to risk closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of › Financial derivative instruments risk the assets. › Structured Finance Securities risk For further information, please refer to our website › Contingent Convertibles instruments risk www.assetmanagement.pictet.

› Leverage risk Calculation Day The capital invested may fluctuate up or down, and in- The calculation and the publication of the net asset vestors may not recover the entire value of the capital value as at a Valuation Day will take place on the Week initially invested. Day following the relevant Valuation Day (the “Calcula- tion Day”). Risk management method: Absolute value-at-risk approach. Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation Expected leverage: Day. 50%. Depending on market conditions, the leverage may be

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PICTET – EUR CORPORATE BONDS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.60% 0.30% 0.05% A *** 0.60% 0.30% 0.05% P − 0.90% 0.30% 0.05% R − 1.25% 0.30% 0.05% Z − 0% 0.30% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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4. PICTET – GLOBAL EMERGING DEBT The Compartment may also invest up to 20% of its as- Typical investor profile sets in Sukuk al Ijarah, Sukuk al Wakalah, Sukuk al The Compartment is an actively managed investment ve- Mudaraba or any other type of Shariah-compliant fixed- hicle for investors: income securities within the limits of the grand-ducal regulation dated 8 February 2008. › Who wish to invest in fixed-income securities from issuers located in emerging markets. Investments in unlisted securities and in Russia, other than on the Moscow Stock Exchange will not exceed › Who are risk tolerant. 10% of the Compartment’s net assets. Investment policy and objectives The Compartment’s objective is to seek income and cap- The Compartment may also invest in warrants on fixed- ital growth by investing its portfolio in bonds and money income transferable securities, but investments in such market instruments in Emerging Countries, within the warrants may account for no more than 10% of the limits allowed by the investment restrictions. Compartment’s net assets.

At least two-thirds of the total assets/ total wealth of the Investments may be denominated in any currencies. Compartment will be invested in bonds and other debt The Compartment may be exposed to non-investment instruments issued or guaranteed by national or local grade debt securities, (including distressed and de- governments of emerging countries and/or other issuers faulted securities for up to 10% of its net assets). domiciled in emerging countries. In addition, the Compartment may invest up to 10% of Emerging countries are defined as those considered, at its net assets in UCITS and other UCIs, including other the time of investing, as industrially developing coun- Compartments of the Fund pursuant to Article 181 of tries by the International Monetary Fund, the World the 2010 Act. Bank, the International Finance Corporation (IFC) or one The Compartment will not invest more than 10% of its of the leading investment banks. These countries in- assets in shares or any other similar security, derivative clude, but are not limited to, the following: Mexico, instruments (including warrants) and/or structured prod- Hong Kong, Singapore, Turkey, Poland, the Czech Re- ucts (in particular convertible bonds) whose underliers public, Hungary, South Africa, Chile, Slovakia, Brazil, are, or offer exposure to, equities or similar securities. the Philippines, Argentina, Thailand, South Korea, Co- lombia, Taiwan, Indonesia, India, China, Romania, By analogy, investments in undertakings for collective Ukraine, Malaysia, Croatia, and Russia. investment whose main objective is to invest in the assets listed above are also included in the 10% limit. The Compartment may invest up to 30% of its net assets in bonds and other debt securities denominated in The Compartment may also invest in structured prod- RMB through (i) the QFII quota granted to an entity of ucts, such as bonds or other transferable securities the Pictet Group (ii) the RQFII quota granted to an en- whose returns are linked to the performance of an index, tity of the Pictet Group and/or (iii) Bond Connect. transferable securities or a basket of transferable securities, or an undertaking for collective investment, for ex- Investments in China may be performed, inter alia, on the ample. China Interbank Bond Market (“CIBM”) directly or through the QFII or the RQFII quota granted to the Man- The Compartment may enter into Securities Lending agers or through Bond Connect. Investments in China Agreements and Repurchase and Reverse Repurchase may also be performed on any acceptable securities trad- Agreements in order to increase its capital or its income ing programmes which may be available to the Compart- or to reduce its costs or risks. ment in the future as approved by the relevant regulators The Compartment may conduct non-deliverable forward from time to time. transactions. A Non-Deliverable Forward is a bilateral fi- Investments in money market instruments will not ex- nancial futures contract on an exchange rate between a ceed one-third of the net assets of the Compartment. strong currency and an emerging currency. At maturity, there will be no delivery of the emerging currency;

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instead there is a cash settlement of the contract’s fi- Risk factors nancial result in the strong currency. The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks The International Swaps and Derivatives Association may also be relevant to the Compartment. Please refer (ISDA) has published standardised documentation for to the section "Risk Considerations" for a full description these transactions, included in the ISDA Master Agree- of these risks. ment. The Compartment may only conduct non-deliverable forward transactions with leading financial institu- › Counterparty risk tions that specialise in this type of transaction, and with › Collateral risk strict adherence to the standardised provisions of the ISDA Master Agreement. › Settlement risk

The Compartment may use derivative techniques and in- › Credit risk struments for efficient management, within the limits › Credit rating risk specified in the investment restrictions. Specifically, the › Volatility risk Compartment may conduct credit default swaps. › High Yield investment risk The investment process integrates ESG criteria based on proprietary and third-party research to evaluate invest- › Distressed and defaulted debt securities risk ment risks and opportunities. When selecting the Com- › Asset liquidity risk partment’s investments, securities of issuers with low › Investment restriction risk ESG characteristics may be purchased and retained in the Compartment’s portfolio. › Currency risk

Reference index: › Interest rate risk JP Morgan EMBI Global Diversified (USD). Used for › Emerging market risk portfolio composition, risk monitoring, performance objective and performance measurement. › Political risk › QFII risk The Compartment is designed to offer performance that is likely to be significantly different from that of the › RQFII risk benchmark. › Chinese currency exchange rate risk

Exposure to total return swaps, Securities Lending › CIBM risk Agreements, Reverse Repurchase Agreements and Re- › Bond Connect Risk purchase Agreements By way of derogation to the maximum exposure referred › Risk of investing in Russia to in the general part of the Prospectus, no more than › Securities Lending Agreement Risk 20% of the Compartment’s net assets will be subject to › Repurchase and reverse repurchase agreement total return swaps. risk By way of derogation to the maximum exposure referred › Sukuk risk to in the general part of the Prospectus, no more than 30% of the Compartment’s net assets will be subject to › Financial derivative instruments risk Reverse Repurchase Agreements. › Structured Finance Securities risk The Compartment does however not expect to be ex- › Leverage risk posed to Securities Lending Agreements, Repurchase The capital invested may fluctuate up or down, and in- Agreements and Reverse Repurchase Agreements. vestors may not recover the entire value of the capital The expected level of exposure to total return swaps initially invested. amounts to 5% of the Compartment’s net assets.

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Risk management method: Banking Day (the “Valuation Day”). Absolute value-at-risk approach. However, the Board of Directors reserves the right not to Expected leverage: calculate the net asset value or to calculate a net asset 275%. value that cannot be used for trading purposes due to Depending on market conditions, the leverage may be closure of one or more markets in which the Fund is in- greater. vested and/or which it uses to value a material part of Leverage calculation method: the assets. Sum of notional amounts. For further information, please refer to our website www.assetmanagement.pictet. Manager: Calculation Day PICTET AM Ltd The calculation and publication of the net asset value as Sub-Manager: at a Valuation Day will take place on the Week Day fol- PICTET AMS lowing the relevant Valuation Day (the “Calculation Day”). Reference currency of the Compartment: USD Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation Cut-off time for receipt of orders Subscription Day. By 3:00 pm on the relevant Valuation Day. Calculation of the net asset value Redemption The effect of net asset value corrections, more fully de- By 3:00 pm on the relevant Valuation Day. scribed in the section “Swing pricing mechanism /Spread”, will not exceed 3%. Switch The more restrictive time period of the two Compart- ments concerned.

Frequency of net asset value calculation The net asset value will be determined as at each

PICTET – GLOBAL EMERGING DEBT

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.10% 0.30% 0.05% A *** 1.10% 0.30% 0.05% P − 1.45% 0.30% 0.05% 0.30% 0.05% R − 1.75%

Z − 0% 0.30% 0.05% J USD 50 million 1.10% 0.30% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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5. PICTET – GLOBAL BONDS China Interbank Bond Market (“CIBM”) directly or

through the QFII or the RQFII quota granted to the Man- Typical investor profile agers or through Bond Connect. Investments in China The Compartment is an actively managed investment ve- may also be performed on any acceptable securities trad- hicle for investors: ing programmes which may be available to the Compart- › Who wish to invest in an internationally-diversi- ment in the future as approved by the relevant regulators fied portfolio that includes bonds and other from time to time. fixed-income instruments. The Compartment may also invest in structured prod- › Who are willing to bear variations in market ucts, such as bonds or other transferable securities value and thus have a medium aversion to risk. whose returns are linked to the performance of an index, Investment policy and objectives transferable securities or a basket of transferable securi- The objective of this Compartment is to seek revenue ties, or an undertaking for collective investment, for ex- and capital growth by investing primarily in any form of ample. debt securities (including but not limited to government To achieve its investment objective and through the use or corporate bonds, convertible bonds, inflation-indexed of financial derivative instruments, the Compartment bonds, ABS and MBS) and money market instruments. can hold a significant portion of liquid assets (such as The Compartment will thus invest primarily as follows: deposits and money market instruments).

 directly in the securities/asset classes listed In addition, the Compartment may invest up to 10% of above; and/or its net assets in UCITS and other UCIs, including other  in transferable securities (such as structured Compartments of the Fund pursuant to Article 181 of products, as described below) linked to perfor- the 2010 Act. mance or offering exposure to the securities/as- The Compartment may enter into Securities Lending set classes mentioned in the preceding para- Agreements and Repurchase and Reverse Repurchase graph; and/or Agreements in order to increase its capital or its income  via financial derivative instruments whose under- or to reduce its costs or risks. liers are the securities mentioned in the preceding paragraph or assets offering exposure to For hedging and for any other purposes, within the lim- these securities/asset classes. its set out in the chapter” Investment restrictions” of The Compartment may invest in any country (including the Prospectus, the Compartment may use all types of emerging countries), in any economic sector and in any financial derivative instruments traded on a regulated currency. However, depending on market conditions, the market and/or over the counter (OTC) provided they are investments may be focused on one country or on a lim- contracted with leading financial institutions specialized ited number of countries and/or one economic activity in this type of transactions. In particular, the Compart- sector and/or one currency. ment may take exposure through any financial derivative instruments such as but not limited to warrants, futures, This Compartment may also invest in high-yield bonds options, swaps (including but not limited to total return including fixed-rate, variable-rate or convertible bonds, swaps, contracts for difference, credit default swaps) and up to a maximum of 20% in contingent convertible and forwards on any underlying in line with the 2010 bonds (“CoCo Bonds”). Act as well as the investment policy of the Compart- The Compartment may also invest up to 20% of its net ment, including but not limited to, currencies (including assets in bonds and other debt securities denominated non-deliverable forwards), interest rates, transferable se- in RMB through (i) the QFII quota granted to an entity curities, basket of transferable securities, indices (in- of the Pictet Group (ii) the RQFII quota granted to an cluding but not limited to commodities, precious metals entity of the Pictet Group and/or (iii) Bond Connect. or volatility indices), undertakings for collective investment. Investments in China may be performed, inter alia, on the

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The Compartment may conduct non-deliverable forward Reverse Repurchase Agreements. transactions. A Non-Deliverable Forward is a bilateral fi- The expected level of exposure to total return swaps nancial futures contract on an exchange rate between a amounts to 5% of the Compartment’s net assets. strong currency and an emerging currency. At maturity, there will be no delivery of the emerging currency; in- The Compartment does however not expect to be ex- stead there is a cash settlement of the contract’s finan- posed to Securities Lending Agreements, Repurchase cial result in the strong currency. Agreements and Reverse Repurchase Agreements.

The International Swaps and Derivatives Association Risk factors (ISDA) has published standardised documentation for The risks listed below are the most relevant risks of the these transactions, included in the ISDA Master Agree- Compartment. Investors should be aware that other risks ment. The Compartment may only conduct non-delivera- may also be relevant to the Compartment. Please refer ble forward transactions with leading financial institu- to the section "Risk Considerations" for a full description tions that specialise in this type of transaction, and with of these risks. strict adherence to the standardised provisions of the › Counterparty risk ISDA Master Agreement. › Collateral risk Under exceptional circumstances, if the manager con- › Credit risk siders this to be in the best interest of the Shareholders, the Compartment may hold up to 100% of its net assets › Credit rating risk in liquidities as amongst others cash deposits, money › High Yield investment risk market funds (within the above-mentioned 10% limit) and money market instruments. › Currency risk

The investment process integrates ESG criteria based on › Interest rate risk proprietary and third-party research to evaluate invest- › Emerging market risk ment risks and opportunities. When selecting the Com- › Risk of investing in the PRC partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in › QFII risk the Compartment’s portfolio. › RQFII risk Reference index: › Chinese currency exchange rate risk FTSE WBGI All Maturities (EUR). Used for risk monitor- › CIBM risk ing, performance objective and performance measurement. › Bond Connect Risk

› Securities Lending Agreement Risk The Compartment is designed to offer performance that is likely to be significantly different from that of the › Repurchase and reverse repurchase agreement benchmark. risk › Financial derivative instruments risk Exposure to total return swaps, Securities Lending Agreements, Reverse Repurchase Agreements and Re- › Structured Finance Securities risk purchase Agreements › Contingent Convertibles instruments risk By way of derogation to the maximum exposure referred to in the general part of the Prospectus, no more than › Leverage risk 20% of the Compartment’s net assets will be subject to The capital invested may fluctuate up or down, and in- total return swaps. vestors may not recover the entire value of the capital By way of derogation to the maximum exposure referred initially invested. to in the general part of the Prospectus, no more than Risk management method: 30% of the Compartment’s net assets will be subject to Absolute value-at-risk approach.

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Expected leverage: Frequency of net asset value calculation 250% The net asset value will be determined as at each Bank- Depending on market conditions, the leverage may be ing Day (the “Valuation Day”). greater. However, the Board of Directors reserves the right not to Leverage calculation method: calculate the net asset value or to calculate a net asset Sum of notional amounts. value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- Managers: PICTET AM S.A., PICTET AM Ltd vested and/or which it uses to value a material part of the assets. Reference currency of the Compartment: EUR For further information, please refer to our website www.assetmanagement.pictet. Cut-off time for receipt of orders Subscription Calculation Day By 3:00 pm on the relevant Valuation Day. The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day fol- Redemption lowing the relevant Valuation Day (the “ By 3:00 pm on the relevant Valuation Day. Calculation Day”). Switch The more restrictive time period of the two Compart- Payment value date for subscriptions and redemptions ments concerned. Within 3 Week Days following the applicable Valuation Day.

PICTET – GLOBAL BONDS Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.50% 0.30% 0.20% A *** 0.50% 0.30% 0.20% P − 1.00% 0.30% 0.20% R − 1.45% 0.30% 0.20% Z − 0% 0.30% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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6. PICTET – EUR HIGH YIELD These investments may be made in all markets while seeking capital growth in the reference currency. Typical investor profile The Compartment is an actively managed investment ve- In addition, the Compartment may invest up to 20% of hicle for investors: its net assets in emerging countries.

› Who wish to invest in high-yield bonds denomi- A minimum of two-thirds of the Compartment’s assets nated in euros. will be denominated in euros.

› Who have medium to high risk tolerance. The Compartment may be exposed to non-investment Investment policy and objectives grade debt securities (including distressed and de- This Compartment invests at least two-thirds of its total faulted securities for up to 10% of its net assets). assets/ total wealth in a diversified portfolio of second The Compartment may also invest in structured prod- quality high-yield bonds and convertible bonds with a ucts, such as bonds or other transferable securities minimum rating equivalent to B-, within the limits al- whose returns are linked to the performance of an index, lowed by the investment restrictions. Second quality in- transferable securities or a basket of transferable securi- vestments, compared to investments in securities from ties, or an undertaking for collective investment, for ex- top quality debtors, may present an above-average yield ample. but also carry greater risk with regard to the issuer’s solvency. The Compartment may enter into Securities Lending Agreements and Repurchase and Reverse Repurchase The Compartment may also invest up to 10% of its net Agreements in order to increase its capital or its income assets in securities pledged by assets, securities of issu- or to reduce its costs or risks. ers enjoying state support, issues securitised by bonds, issues securitised by loans and mortgages (including the The Compartment may use derivative techniques and in- securitisation of such debts). struments for efficient management, within the limits specified in the investment restrictions. Specifically, the The Compartment may also invest in warrants on fixed- Compartment may conduct credit default swaps. income transferable securities, but investments in such warrants may account for no more than 10% of the The investment process integrates ESG criteria based on Compartment’s net assets. proprietary and third-party research to evaluate investment risks and opportunities. When selecting the Com- Investments in convertible bonds (including contingent partment’s investments, securities of issuers with low convertible bonds (“CoCo Bonds”)) may not exceed 20% ESG characteristics may be purchased and retained in of the Compartment’s net assets. Following the conver- the Compartment’s portfolio. sion of such bonds, the Compartment may hold up to 5% of its net assets in the shares issued. Reference index: ICE BofA Euro High Yield Constrained (EUR). Used for In addition, the Compartment may invest up to 10% of portfolio composition, risk monitoring, performance ob- its net assets in UCITS and other UCIs, including other jective and performance measurement. Compartments of the Fund pursuant to Article 181 of the 2010 Act. The Compartment is designed to offer performance that is likely to be significantly different from that of the The Compartment will not invest more than 10% of its benchmark. assets in shares or any other similar security, derivative instruments (including warrants) and/or structured prod- Exposure to total return swaps, Securities Lending ucts (in particular convertible bonds) whose underliers Agreements, Reverse Repurchase Agreements and Re- are, or offer exposure to, equities or similar securities. purchase Agreements By way of derogation to the maximum exposure referred By analogy, investments in undertakings for collective to in the general part of the Prospectus, no more than investment whose main objective is to invest in the as- 20% of the Compartment’s net assets will be subject to sets listed above are also included in the 10% limit.

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total return swaps. Compartment shall be compared with the VaR of the ICE BofA Euro High Yield Constrained (EUR). By way of derogation to the maximum exposure referred to in the general part of the Prospectus, no more than Expected leverage: 30% of the Compartment’s net assets will be subject to 50%. Reverse Repurchase Agreements. Depending on market conditions, the leverage may be greater. The Compartment does however not expect to be exposed to Securities Lending Agreements and Reverse Leverage calculation method: Repurchase Agreements. Sum of notional amounts.

The expected level of exposure to Repurchase Agree- Managers: ments amounts to 5% of the Compartment’s net assets. PICTET AM S.A., PICTET AM Ltd

The expected level of exposure to total return swaps Reference currency of the Compartment: amounts to 5% of the Compartment’s net assets. EUR Cut-off time for receipt of orders Risk factors The risks listed below are the most relevant risks of the Subscription By 3:00 pm on the relevant Valuation Day. Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer Redemption to the section "Risk Considerations" for a full description By 3:00 pm on the relevant Valuation Day. of these risks. Switch › Counterparty risk The more restrictive time period of the two Compart- ments concerned. › Collateral risk Frequency of net asset value calculation › Credit risk The net asset value will be determined as at each Bank- › Credit rating risk ing Day (the “Valuation Day”). › High Yield investment risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › Distressed and defaulted debt securities risk value that cannot be used for trading purposes due to › Asset liquidity risk closure of one or more markets in which the Fund is in- › Interest rate risk vested and/or which it uses to value a material part of the assets. › Emerging market risk For further information, please refer to our website › Securities Lending Agreement Risk www.assetmanagement.pictet. › Repurchase and reverse repurchase agreement risk Calculation Day The calculation and publication of the net asset value as › Financial derivative instruments risk at a Valuation Day will take place on the Week Day fol- › Structured Finance Securities risk lowing the relevant Valuation Day (the “Calculation Day”). › Contingent Convertibles instruments risk Leverage risk Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation The capital invested may fluctuate up or down, and in- Day. vestors may not recover the entire value of the capital Calculation of the net asset value initially invested. The effect of net asset value corrections, more fully de- Risk management method: scribed in the section “Swing pricing mechanism Relative value at risk (VaR). The VaR of the /Spread”, will not exceed 3%.

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PICTET – EUR HIGH YIELD

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 1.10% 0.30% 0.05% A *** 1.10% 0.30% 0.05% P − 1.45% 0.30% 0.05% R − 1.75% 0.30% 0.05% Z − 0% 0.30% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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7. PICTET – EUR SHORT MID-TERM BONDS

Typical investor profile or to reduce its costs or risks. The Compartment is an actively managed investment ve- The Compartment may use derivative techniques and in- hicle for investors: struments for efficient management, within the limits › Who wish to invest in short and medium-term, specified in the investment restrictions. Specifically, the high quality fixed-income securities denomi- Compartment may conduct credit default swaps. nated in euros. The investment process integrates ESG criteria based on › Who have some aversion to risk. proprietary and third-party research to evaluate invest- Investment policy and objectives ment risks and opportunities. When selecting the Com- The assets of the Compartment are invested according partment’s investments, securities of issuers with low to the principle of risk spreading, with at least two- ESG characteristics may be purchased and retained in thirds of its assets held in short/medium-term bonds the Compartment’s portfolio. with a residual maturity for each investment of no more Reference index: than 10 years (including convertible bonds, bonds with JP Morgan EMU Government Bond Investment Grade 1- warrants and zero-coupon bonds) and in similar transfer- 3 Years (EUR). Used for risk monitoring, performance able securities denominated in euros. The average resid- objective and performance measurement. ual duration of the portfolio (the “duration”) cannot, however, exceed 3 years. These investments may be The Compartment is designed to offer performance that made in all markets while seeking capital growth in the is likely to be somewhat similar to that of the bench- reference currency. mark.

A minimum of two-thirds of its total assets/total wealth Exposure to total return swaps, Securities Lending will be denominated in euros. Agreements, Reverse Repurchase Agreements and Re- In addition, the Compartment may invest up to 10% of purchase Agreements its net assets in UCITS and other UCIs, including other By way of derogation to the maximum exposure referred Compartments of the Fund pursuant to Article 181 of to in the general part of the Prospectus, no more than the 2010 Act. 20% of the Compartment’s net assets will be subject to total return swaps. The Compartment will not invest more than 10% of its assets in shares or any other similar security, derivative By way of derogation to the maximum exposure referred instruments (including warrants) and/or structured prod- to in the general part of the Prospectus, no more than ucts (in particular convertible bonds) whose underliers 30% of the Compartment’s net assets will be subject to are, or offer exposure to, equities or similar securities. Reverse Repurchase Agreements.

By analogy, investments in undertakings for collective The Compartment does however not expect to be ex- investment whose main objective is to invest in the as- posed to total return swaps, Securities Lending Agree- sets listed above are also included in the 10% limit. ments, and Reverse Repurchase Agreements.

The Compartment may also invest in structured prod- The expected level of exposure to Repurchase Agree- ucts, such as bonds or other transferable securities ments amounts to 5% of the Compartment’s net assets. whose returns are linked to the performance of an index, Risk factors transferable securities or a basket of transferable securi- The risks listed below are the most relevant risks of the ties, or an undertaking for collective investment, for ex- Compartment. Investors should be aware that other risks ample. may also be relevant to the Compartment. Please refer The Compartment may enter into Securities Lending to the section "Risk Considerations" for a full description Agreements and Repurchase and Reverse Repurchase of these risks. Agreements in order to increase its capital or its income › Counterparty risk

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› Collateral risk Redemption By 3:00 pm on the relevant Valuation Day. › Credit risk Switch › Credit rating risk The more restrictive time period of the two Compart- › Interest rate risk ments concerned.

› Securities Lending Agreement Risk Frequency of net asset value calculation › Repurchase and reverse repurchase agreement The net asset value will be determined as at each Bank- risk ing Day (the “Valuation Day”). › Financial derivative instruments risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › Structured Finance Securities risk value that cannot be used for trading purposes due to › Leverage risk closure of one or more markets in which the Fund is in- The capital invested may fluctuate up or down, and invested and/or which it uses to value a material part of vestors may not recover the entire value of the capital the assets. initially invested. For further information, please refer to our website Risk management method: www.assetmanagement.pictet. Absolute value-at-risk approach. Calculation Day Expected leverage: The calculation and publication of the net asset value as 50%. at a Valuation Day will take place on the Week Day fol- Depending on market conditions, the leverage may be lowing the relevant Valuation Day (the “Calculation greater. Day”).

Leverage calculation method: Payment value date for subscriptions and redemptions Sum of notional amounts. Within 3 Week Days following the applicable Valuation Day. Managers: PICTET AM S.A., PICTET AM Ltd

Reference currency of the Compartment: EUR

Cut-off time for receipt of orders Subscription By 3:00 pm on the relevant Valuation Day.

PICTET – EUR SHORT MID-TERM BONDS Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.35%*** 0.10% 0.05% A **** 0.35%*** 0.10% 0.05% P − 0.60% 0.10% 0.05% R − 0.90% 0.10% 0.05% Z − 0% 0.10% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Except for HI CHF which have a maximum management fee of 0.25%. **** Please refer to www.assetmanagement.pictet

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8. PICTET – USD SHORT MID-TERM BONDS or to reduce its costs or risks.

Typical investor profile The Compartment may use derivative techniques and in- The Compartment is an actively managed investment ve- struments for efficient management, within the limits hicle for investors: specified in the investment restrictions. Specifically, the › Who wish to invest in short and medium-term, Compartment may conduct credit default swaps. high quality fixed-income securities denomi- The investment process integrates ESG criteria based on nated in US dollars. proprietary and third-party research to evaluate invest- › Who have some aversion to risk. ment risks and opportunities. When selecting the Com- partment’s investments, securities of issuers with low Investment policy and objectives The assets of the Compartment are invested according ESG characteristics may be purchased and retained in to the principle of risk spreading, with at least two- the Compartment’s portfolio. thirds of its assets held in short/medium-term bonds Reference index: with a residual maturity for each investment of no more JP Morgan US Government Bond 1-3 Years (USD). Used than 10 years (including convertible bonds, bonds with for risk monitoring, performance objective and perfor- warrants and zero-coupon bonds) and in similar transfer- mance measurement. able securities denominated in US dollars. The average residual duration of the portfolio (the “duration”) can- The Compartment is designed to offer performance that not, however, exceed 3 years. These investments may be is likely to be somewhat similar to that of the benchmark. made in all markets while seeking capital growth in the reference currency. Exposure to total return swaps, Securities Lending A minimum of two-thirds of its total assets/ total wealth Agreements, Reverse Repurchase Agreements and Re- will be denominated in US dollars. purchase Agreements By way of derogation to the maximum exposure referred In addition, the Compartment may invest up to 10% of to in the general part of the Prospectus, no more than its net assets in UCITS and other UCIs, including other 20% of the Compartment’s net assets will be subject to compartments of the Fund pursuant to Article 181 of total return swaps. the 2010 Act. By way of derogation to the maximum exposure referred The Compartment will not invest more than 10% of its to in the general part of the Prospectus, no more than assets in shares or any other similar security, derivative 30% of the Compartment’s net assets will be subject to instruments (including warrants) and/or structured prod- Reverse Repurchase Agreements. ucts (in particular convertible bonds) whose underliers are, or offer exposure to, equities or similar securities. The Compartment does however not expect to be exposed to total return swaps, Securities Lending Agree- By analogy, investments in undertakings for collective ments, and Reverse Repurchase Agreements. investment whose main objective is to invest in the assets listed above are also included in the 10% limit. The expected level of exposure to Repurchase Agree- ments amounts to 5% of the compartment’s net assets. The Compartment may also invest in structured products, such as bonds or other transferable securities Risk factors whose returns are linked to the performance of an index, The risks listed below are the most relevant risks of the transferable securities or a basket of transferable securi- Compartment. Investors should be aware that other risks ties, or an undertaking for collective investment, for ex- may also be relevant to the Compartment. Please refer ample. to the section "Risk Considerations" for a full description of these risks. The Compartment may enter into Securities Lending Agreements and Repurchase and Reverse Repurchase › Counterparty risk Agreements in order to increase its capital or its income › Collateral risk

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› Credit risk Redemption By 3:00 pm on the relevant Valuation Day. › Credit rating risk Switch › Interest rate risk The more restrictive time period of the two compart- › Securities Lending Agreement Risk ments concerned.

› Repurchase and reverse repurchase agreement Frequency of net asset value calculation risk The net asset value will be determined as at each Bank- › Financial derivative instruments risk ing Day (the “Valuation Day”). › Structured Finance Securities risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset Leverage risk value that cannot be used for trading purposes due to The capital invested may fluctuate up or down, and in- closure of one or more markets in which the Fund is investors may not recover the entire value of the capital vested and/or which it uses to value a material part of initially invested. the assets.

Risk management method: For further information, please refer to our website Absolute value-at-risk approach. www.assetmanagement.pictet.

Expected leverage: Calculation Day 50%. The calculation and publication of the net asset value as Depending on market conditions, the leverage may be at a Valuation Day will take place on the Week Day fol- greater. lowing the relevant Valuation Day (the” Calculation Leverage calculation method: Day”). sum of notional amounts. Payment value date for subscriptions and redemptions Managers: Within 3 Week Days following the applicable Valuation PICTET AM S.A., PICTET AM Ltd Day.

Reference currency of the Compartment: USD

Cut-off time for receipt of orders Subscription By 3:00 pm on the relevant Valuation Day.

PICTET – USD SHORT MID-TERM BONDS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.35% 0.10% 0.05% A *** 0.35% 0.10% 0.05% P − 0.60% 0.10% 0.05% R − 0.90% 0.10% 0.05% Z − 0% 0.10% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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9. PICTET – CHF BONDS proprietary and third-party research to evaluate invest- Typical investor profile ment risks and opportunities. When selecting the Com- The Compartment is an actively managed investment ve- partment’s investments, securities of issuers with low hicle for investors: ESG characteristics may be purchased and retained in › Who wish to invest in fixed-income instruments the Compartment’s portfolio. denominated in Swiss francs. Reference index: › Who seek a stable saving strategy and thus Swiss Bond Index Foreign AAA-BBB (CHF). Used for risk have some aversion to risk. monitoring, performance objective and performance measurement. Investment policy and objectives

This Compartment invests at least two-thirds of its as- The Compartment is designed to offer performance that sets in a diversified portfolio of bonds and a maximum is likely to be somewhat similar to that of the bench- of one-third of its assets in money market instruments mark. and convertible bonds, with this last category not exceeding 20%, within the limits allowed by the invest- Exposure to total return swaps, Securities Lending ment restrictions. These investments may be made in all Agreements, Reverse Repurchase Agreements and Re- markets while seeking capital growth in the reference purchase Agreements currency. By way of derogation to the maximum exposure referred to in the general part of the Prospectus, no more than A minimum of two-thirds of its total assets/total wealth 20% of the Compartment’s net assets will be subject to will be denominated in Swiss francs and the invest- total return swaps. ments not denominated in Swiss francs will generally be hedged in order to avoid exposure to a currency other By way of derogation to the maximum exposure referred than the Swiss franc. to in the general part of the Prospectus, no more than 30% of the Compartment’s net assets will be subject to Investments in convertible bonds may not exceed 20% Reverse Repurchase Agreements. of the Compartment’s net assets. The Compartment does however not expect to be ex- In addition, the Compartment may invest up to 10% of posed to total return swaps, Securities Lending Agree- its net assets in UCITS and other UCIs, including other ments Repurchase Agreements and Reverse Repurchase Compartments of the Fund pursuant to Article 181 of Agreements. the 2010 Act. Risk factors The Compartment may also invest in structured prod- The risks listed below are the most relevant risks of the ucts, such as bonds or other transferable securities Compartment. Investors should be aware that other risks whose returns are linked to the performance of an index, may also be relevant to the Compartment. Please refer transferable securities or a basket of transferable securi- to the section "Risk Considerations" for a full description ties, or an undertaking for collective investment, for ex- of these risks. ample. › Counterparty risk The Compartment may enter into Securities Lending Agreements and Repurchase and Reverse Repurchase › Collateral risk Agreements in order to increase its capital or its income › Credit risk or to reduce its costs or risks. › Credit rating risk The Compartment may use derivative techniques and in- › Asset liquidity risk struments for efficient management, within the limits specified in the investment restrictions. Specifically, the › Interest rate risk Compartment may conduct credit default swaps. › Emerging market risk The investment process integrates ESG criteria based on › Securities Lending Agreement Risk

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› Repurchase and reverse repurchase agreement Redemption risk By 3:00 pm on the relevant Valuation Day.

› Financial derivative instruments risk Switch The more restrictive time period of the two Compart- › Structured Finance Securities risk ments concerned. › Leverage risk Frequency of net asset value calculation The capital invested may fluctuate up or down, and in- The net asset value will be determined as at each Bank- vestors may not recover the entire value of the capital ing Day (the “Valuation Day”). initially invested. However, the Board of Directors reserves the right not to Risk management method: calculate the net asset value or to calculate a net asset Absolute value-at-risk approach. value that cannot be used for trading purposes due to Expected leverage: closure of one or more markets in which the Fund is in- 50%. vested and/or which it uses to value a material part of Depending on market conditions, the leverage may be the assets. greater. For further information, please refer to our website Leverage calculation method: www.assetmanagement.pictet. Sum of notional amounts. Calculation Day Managers: The calculation and publication of the net asset value as PICTET AM S.A., PICTET AM Ltd at a Valuation Day will take place on the Week Day following the relevant Valuation Day (the “Calculation Reference currency of the Compartment: CHF Day”).

Cut-off time for receipt of orders Payment value date for subscriptions and redemptions Subscription Within 2 Week Days following the applicable Valuation By 3:00 pm on the relevant Valuation Day. Day.

PICTET – CHF BONDS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I CHF 1 million 0.45% 0.30% 0.05% A *** 0.45% 0.30% 0.05% P − 0.80% 0.30% 0.05% R − 1.05% 0.30% 0.05% Z − 0% 0.30% 0.05% J CHF 100 million 0.45% 0.30% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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10. PICTET – EUR GOVERNMENT BONDS in liquidities as amongst others cash deposits, money market funds (within the above-mentioned 10% limit) Typical investor profile The Compartment is an actively managed investment ve- and money market instruments. hicle for investors: The investment process integrates ESG criteria based on › Who wish to invest in fixed-income instruments proprietary and third-party research to evaluate invest- denominated in euros. ment risks and opportunities. When selecting the Com- partment’s investments, securities of issuers with low › Who seek a stable saving strategy and thus ESG characteristics may be purchased and retained in have some aversion to risk. the Compartment’s portfolio. Investment policy and objectives This Compartment invests mainly in a diversified portfo- Reference index: JP Morgan EMU Government Bond Investment Grade lio of bonds and other debt securities denominated in (EUR). Used for risk monitoring, performance objective euros issued or guaranteed by national or local govern- and performance measurement. ments, or by supranational organisations, within the limits allowed by the investment restrictions. The Compartment is designed to offer performance that In addition, the Compartment may invest up to 10% of is likely to be fairly similar to that of the benchmark. its net assets in UCITS and other UCIs, including other Compartments of the Fund pursuant to Article 181 of Exposure to total return swaps, Securities Lending Agreements, Reverse Repurchase Agreements and Re- the 2010 Act. purchase Agreements The Compartment may enter into Securities Lending By way of derogation to the maximum exposure referred Agreements and Repurchase and Reverse Repurchase to in the general part of the Prospectus, no more than Agreements in order to increase its capital or its income 20% of the Compartment’s net assets will be subject to or to reduce its costs or risks. total return swaps.

For efficient management and within the limits of the By way of derogation to the maximum exposure referred investment restrictions set out in the Prospectus, the to in the general part of the Prospectus, no more than Compartment may use any type of financial derivative 30% of the Compartment’s net assets will be subject to traded on a regulated and/or over-the-counter (OTC) Reverse Repurchase Agreements. market if obtained from a leading financial institution The Compartment does however not expect to be ex- that specialises in these types of transactions. In partic- posed to total return swaps, Securities Lending Agree- ular, the Compartment may, among other investments ments, Repurchase Agreements and Reverse Repur- but not exclusively, invest in warrants, futures, options, chase Agreements. swaps (such as total return swaps, contracts for difference and credit default swaps) and futures contracts Risk factors with underlying assets compliant with the 2010 Act and The risks listed below are the most relevant risks of the the Compartment’s investment policy, as well as curren- Compartment. Investors should be aware that other risks cies (including non-deliverable forwards), interest rates, may also be relevant to the Compartment. Please refer transferable securities, a basket of transferable securi- to the section "Risk Considerations" for a full description ties, indexes, and undertakings for collective invest- of these risks. ment. › Counterparty risk Specifically, the Compartment may conduct credit de- › Collateral risk fault swaps. › Credit risk Under exceptional circumstances, if the manager con- › Credit rating risk siders this to be in the best interest of the Shareholders, the Compartment may hold up to 100% of its net assets › Interest rate risk

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› Securities Lending Agreement Risk Redemption By 3:00 pm on the relevant Valuation Day. › Repurchase and reverse repurchase agreement risk Switch The more restrictive time period of the two Compart- › Financial derivative instruments risk ments concerned. › Leverage risk Frequency of net asset value calculation The capital invested may fluctuate up or down, and in- The net asset value will be determined as at each Bank- vestors may not recover the entire value of the capital ing Day (the “Valuation Day”). initially invested. However, the Board of Directors reserves the right not to Risk management method: calculate the net asset value or to calculate a net asset Absolute value-at-risk approach. value that cannot be used for trading purposes due to Expected leverage: closure of one or more markets in which the Fund is in- 50%. vested and/or which it uses to value a material part of Depending on market conditions, the leverage may be the assets. greater. For further information, please refer to our website Leverage calculation method: www.assetmanagement.pictet. Sum of notional amounts. Calculation Day Managers: The calculation and publication of the net asset value PICTET AM S.A., PICTET AM Ltd will take place on the Week Day following the relevant Valuation Day (the “Calculation Day”). Reference currency of the Compartment: EUR Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation Cut-off time for receipt of orders Subscription Day. By 3:00 pm on the relevant Valuation Day.

PICTET – EUR GOVERNMENT BONDS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.30% 0.15% 0.20% A *** 0.30% 0.15% 0.20% P − 0.60% 0.15% 0.20% R − 0.90% 0.15% 0.20% Z − 0% 0.15% 0.20% J EUR 50 million 0.30% 0.15% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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11. PICTET – EMERGING LOCAL CURRENCY DEBT

Typical investor profile The Compartment may also invest up to 25% of its net The Compartment is an actively managed investment ve- assets, not including the investments in Non-Deliverable hicle for investors: Forwards described below, in structured products, including in particular credit-linked notes and bonds or › Who wish to invest in fixed-income securities from issuers located in emerging markets other transferable securities whose returns are linked to and/or by holding money market instruments of the performance of an index, transferable securities or a emerging countries. basket of transferable securities, or an undertaking for collective investment. › Who are risk tolerant. The investments are primarily denominated in the local Investment policy and objectives The Compartment’s objective is to seek income and cap- currencies of the emerging countries. In all cases, the ital growth by investing a minimum of two-thirds of its Compartment’s exposure to these currencies will be at total assets/total wealth in a diversified portfolio of least two-thirds, either by direct or indirect investment bonds and other debt securities linked to local emerging or by authorised derivative instruments. debt. The Compartment may be exposed to non-investment The Compartment may invest up to 30% of its net as- grade debt securities (including distressed and de- sets in bonds and other debt securities denominated in faulted securities for up to 10% of its net assets) RMB through (i) the QFII quota granted to an entity of The Compartment may also invest up to 20% of its as- the Pictet Group (ii) the RQFII quota granted to an en- sets in Sukuk al Ijarah, Sukuk al Wakalah, Sukuk al tity of the Pictet Group and/or (iii) Bond Connect. Mudaraba or any other type of Shariah-compliant fixed- Investments in China may be performed, inter alia, on income securities within the limits of the grand-ducal the China Interbank Bond Market (“CIBM”) directly or regulation dated 8 February 2008. through the QFII or the RQFII quota granted to the Man- In addition, the Compartment may invest up to 10% of agers or through Bond Connect. Investments in China its net assets in UCITS and other UCIs, including other may also be performed on any acceptable securities Compartments of the Fund pursuant to Article 181 of trading programmes which may be available to the Com- the 2010 Act. partment in the future as approved by the relevant regu- The Compartment will not invest more than 10% of its lators from time to time. assets in shares or any other similar security, derivative Emerging countries are defined as those considered, at instruments (including warrants) and/or structured prod- the time of investing, as industrially developing coun- ucts (in particular convertible bonds) whose underliers tries by the International Monetary Fund, the World are, or offer exposure to, equities or similar securities. Bank, the International Finance Corporation (IFC) or one By analogy, investments in undertakings for collective of the leading investment banks. These countries in- investment whose main objective is to invest in the as- clude, but are not limited to, the following: Mexico, sets listed above are also included in the 10% limit. Hong Kong, Singapore, Turkey, Poland, the Czech Re- public, Hungary, Israel, South Africa, Chile, Slovakia, The Compartment may enter into Securities Lending Brazil, the Philippines, Argentina, Thailand, South Ko- Agreements and Repurchase and Reverse Repurchase rea, Colombia, Taiwan, Indonesia, India, China, Roma- Agreements in order to increase its capital or its income nia, Ukraine, Malaysia, Croatia, and Russia. or to reduce its costs or risks.

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instruments such as options or currency warrants. To ESG characteristics may be purchased and retained in achieve this, the Compartment may enter into over-the- the Compartment’s portfolio. counter agreements with leading financial institutions. Reference index: The Compartment may conduct non-deliverable forward JP Morgan GBI-EM Global Diversified (USD). Used for transactions. A Non-Deliverable Forward is a bilateral fi- portfolio composition, risk monitoring, performance ob- nancial futures contract on an exchange rate between a jective and performance measurement. strong currency and an emerging currency. At maturity, there will be no delivery of the emerging currency; in- The Compartment is designed to offer performance that is likely to be significantly different from that of the stead there is a cash settlement of the contract’s finan- benchmark. cial result in the strong currency.

The International Swaps and Derivatives Association Exposure to total return swaps, Securities Lending (ISDA) has published standardised documentation for Agreements, Reverse Repurchase Agreements and Re- these transactions, included in the ISDA Master Agree- purchase Agreements By way of derogation to the maximum exposure referred ment. The Compartment may only conduct non-delivera- to in the general part of the Prospectus, no more than ble forward transactions with leading financial institu- 20% of the Compartment’s net assets will be subject to tions that specialise in this type of transaction, and with total return swaps. strict adherence to the standardised provisions of the ISDA Master Agreement. By way of derogation to the maximum exposure referred to in the general part of the Prospectus, no more than Pursuant to its investment policy, the Compartment may 30% of the Compartment’s net assets will be subject to hold a significant portion of liquid assets and money Reverse Repurchase Agreements. market instruments that are traded regularly and whose residual maturity does not exceed 12 months. In addi- The Compartment does however not expect to be ex- tion, if the manager deems that it is in the best interest posed to Securities Lending Agreements, Repurchase of the Shareholders, the Compartment may also hold up Agreements and Reverse Repurchase Agreements. to 33% of its net assets in liquid assets and money mar- The expected level of exposure to total return swaps ket instruments that are regularly traded and whose re- amounts to 5% of the Compartment’s net assets. sidual maturity does not exceed 12 months. Risk factors The Compartment may use derivative techniques and in- The risks listed below are the most relevant risks of the struments for efficient management, within the limits Compartment. Investors should be aware that other risks specified in the investment restrictions. may also be relevant to the Compartment. Please refer Financial derivative instruments may include options, to the section "Risk Considerations" for a full description futures contracts on financial instruments, options on of these risks. such contracts as well as over-the-counter swaps on var- › Counterparty risk ious types of financial instruments and Total Return Swaps. › Collateral risk

The Compartment may conduct credit default swap › Settlement risk transactions for up to 100% of its net assets. › Credit risk Investments in unlisted securities and in Russia, other › Credit rating risk than on the Moscow Stock Exchange will not exceed › Asset liquidity risk 10% of the Compartment’s net assets. › Investment restriction risk The investment process integrates ESG criteria based on › Currency risk proprietary and third-party research to evaluate investment risks and opportunities. When selecting the Com- › Interest rate risk partment’s investments, securities of issuers with low › Volatility risk

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› Emerging market risk Leverage calculation method: Sum of notional amounts. › Political risk Manager: › QFII risk PICTET AM Ltd › RQFII risk Sub-manager: › Chinese currency exchange rate risk PICTET AMS › CIBM risk Reference currency of the Compartment: USD › Bond Connect Risk Cut-off time for receipt of orders › Securities Lending Agreement Risk Subscription › Repurchase and reverse repurchase agreement By 3:00 pm on the relevant Valuation Day. risk Redemption › Sukuk risk By 3:00 pm on the relevant Valuation Day.

› Financial derivative instruments risk Switch › Structured Finance Securities risk The more restrictive time period of the two Compart- ments concerned. › High Yield investment risk Frequency of net asset value calculation › Distressed and defaulted debt securities risk The net asset value will be determined as at each Bank- › Leverage risk ing Day (the “Valuation Day”). The capital invested may fluctuate up or down, and in- However, the Board of Directors reserves the right not to vestors may not recover the entire value of the capital calculate the net asset value or to calculate a net asset initially invested. value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- Risk management method: vested and/or which it uses to value a material part of Absolute value-at-risk approach. the assets. Expected leverage: 350%. For further information, please refer to our website Depending on market conditions, the leverage may be www.assetmanagement.pictet. greater. Calculation Day The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day following the relevant Valuation Day (the “Calculation Day”).

Calculation of the net asset value The effect of net asset value corrections described in the section “Swing pricing mechanism /Spread” will not exceed 3%.

Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation Day.

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PICTET – EMERGING LOCAL CURRENCY DEBT

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.05% 0.40% 0.20% A *** 1.05% 0.40% 0.20% P − 2.10% 0.40% 0.20% R − 3.00% 0.40% 0.20% Z − 0% 0.40% 0.20% J USD 50 million 1.05% 0.40% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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12. PICTET – ASIAN LOCAL CURRENCY DEBT Mudaraba or any other type of Shariah-compliant fixed- income securities within the limits of the grand-ducal Typical investor profile The Compartment is an actively managed investment ve- regulation dated 8 February 2008. hicle for investors: The Compartment may also invest up to 25% of its net › Who wish to invest in fixed-income securities assets, not including the investments in Non-Deliverable from issuers located in Asian emerging markets Forwards described below, in structured products, in- and/or by holding money market instruments in cluding in particular credit-linked notes and bonds or the Asian emerging countries. other transferable securities whose returns are linked to › Who are risk tolerant. the performance of an index, transferable securities or a basket of transferable securities, or an undertaking for Investment policy and objectives collective investment. The Compartment’s objective is to seek income and capital growth by investing a minimum of two-thirds of its The investments are primarily denominated in the local total assets/ total wealth in a diversified portfolio of currencies of the Asian emerging countries. In all cases, bonds and other debt securities linked to Asian local the Compartment’s exposure to these currencies will be emerging debt. at least two-thirds, either by direct or indirect investment or by authorised derivative instruments. The Compartment may invest up to 49% of its net assets in bonds and other debt securities denominated in The Compartment may be exposed to non-investment RMB through (i) the QFII quota granted to an entity of grade debt securities (including distressed and de- the Pictet Group (subject to a maximum of 35% of its faulted securities for up to 10% of its net assets). net assets) (ii) the RQFII quota granted to an entity of In addition, the Compartment may invest up to 10% of the Pictet Group and/or (iii) Bond Connect. its net assets in UCITS and other UCIs, including other Investments in China may be performed, inter alia, on Compartments of the Fund pursuant to Article 181 of the China Interbank Bond Market (“CIBM”) directly or the 2010 Act. through the QFII or the RQFII quota granted to the Man- The Compartment will not invest more than 10% of its agers or through Bond Connect. Investments in China assets in shares or any other similar security, derivative may also be performed on any acceptable securities instruments (including warrants) and/or structured prod- trading programmes which may be available to the Com- ucts (in particular convertible bonds) whose underliers partment in the future as approved by the relevant regu- are, or offer exposure to, equities or similar securities. lators from time to time. By analogy, investments in undertakings for collective The Asian emerging countries are defined as those con- investment whose main objective is to invest in the as- sidered, at the time of investing, as industrially develop- sets listed above are also included in the 10% limit. ing countries by the International Monetary Fund, the The Compartment may enter into Securities Lending World Bank, the International Finance Corporation (IFC) Agreements and Repurchase and Reverse Repurchase or one of the leading investment banks. These countries Agreements in order to increase its capital or its income include, but are not limited to, the following: Hong or to reduce its costs or risks. Kong, Singapore, the Philippines, Thailand, South Ko- rea, Taiwan, Indonesia, India, China, and Malaysia. The total amount of commitments resulting from currency transactions made for purposes of speculation and The Compartment may also invest in warrants on trans- hedging may not exceed 100% of the Compartment’s ferable securities and indexes and in subscription warrants and may use currency transactions for a purpose net assets. These transactions will be conducted as other than hedging. Non-Deliverable Forwards, forward contracts or other instruments such as options or currency warrants. To The Compartment may also invest up to 20% of its as- achieve this, the Compartment may enter into over-the- sets in Sukuk al Ijarah, Sukuk al Wakalah, Sukuk al counter agreements with leading financial institutions.

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The Compartment may conduct non-deliverable forward Reference index: transactions. A Non-Deliverable Forward is a bilateral fi- JP Morgan JADE Broad Asia Diversified (USD). Used for nancial futures contract on an exchange rate between a portfolio composition, risk monitoring, performance ob- strong currency and an emerging currency. At maturity, jective and performance measurement. there will be no delivery of the emerging currency; instead there is a cash settlement of the contract’s finan- The Compartment is designed to offer performance that is likely to be significantly different from that of the cial result in the strong currency. benchmark. The International Swaps and Derivatives Association (ISDA) has published standardised documentation for Exposure to total return swaps, Securities Lending these transactions, included in the ISDA Master Agree- Agreements, Reverse Repurchase Agreements and Re- ment. The Compartment may only conduct non-delivera- purchase Agreements By way of derogation to the maximum exposure referred ble forward transactions with leading financial institu- to in the general part of the Prospectus, no more than tions that specialise in this type of transaction, and with 20% of the Compartment’s net assets will be subject to strict adherence to the standardised provisions of the total return swaps. ISDA Master Agreement. By way of derogation to the maximum exposure referred Pursuant to its investment policy, the Compartment may to in the general part of the Prospectus, no more than hold a significant portion of liquid assets and money 30% of the Compartment’s net assets will be subject to market instruments that are traded regularly and whose Reverse Repurchase Agreements. residual maturity does not exceed 12 months. In addition, if the manager deems that it is in the best interest The Compartment does however not expect to be ex- of the Shareholders, the Compartment may also hold up posed to Securities Lending Agreements, Repurchase to 33% of its net assets in liquid assets and money mar- Agreements and Reverse Repurchase Agreements. ket instruments that are regularly traded and whose re- The expected level of exposure to total return swaps sidual maturity does not exceed 12 months. amounts to 5% of the Compartment’s net assets. The Compartment may use derivative techniques and in- Risk factors struments for efficient management, within the limits The risks listed below are the most relevant risks of the specified in the investment restrictions. Compartment. Investors should be aware that other risks Financial derivative instruments may include options, may also be relevant to the Compartment. Please refer futures contracts on financial instruments, options on to the section "Risk Considerations" for a full description such contracts as well as over-the-counter swaps on var- of these risks. ious types of financial instruments and Total Return › Counterparty risk Swaps. › Collateral risk The Compartment may conduct credit default swap transactions for up to 100% of its net assets. › Settlement risk

Investments in unlisted securities and in Russia, other › Credit risk than on the Moscow Stock Exchange may not exceed › Credit rating risk 10% of the Compartment’s net assets. › Asset liquidity risk The investment process integrates ESG criteria based on › Investment restriction risk proprietary and third-party research to evaluate investment risks and opportunities. When selecting the Com- › Currency risk partment’s investments, securities of issuers with low › Volatility risk ESG characteristics may be purchased and retained in › Interest rate risk the Compartment’s portfolio. › Emerging market risk

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› Political risk Manager: PICTET AM Ltd › Risk of investing in the PRC Sub-manager: › QFII risk PICTET AMS › RQFII risk Reference currency of the Compartment: › Chinese currency exchange rate risk USD

› CIBM risk Cut-off time for receipt of orders Subscription › Bond Connect Risk By 3:00 pm on the Banking Day preceding the relevant › Securities Lending Agreement Risk Valuation Day.

› Repurchase and reverse repurchase agreement Redemption risk By 3:00 pm on the Banking Day preceding the relevant › Sukuk risk Valuation Day. › Financial derivative instruments risk Switch The more restrictive time period of the two Compart- › Structured Finance Securities risk ments concerned. › High Yield investment risk Frequency of net asset value calculation › Distressed and defaulted debt securities risk The net asset value will be determined as at each Bank- ing Day › Leverage risk The capital invested may fluctuate up or down, and in- (the “Valuation Day”). vestors may not recover the entire value of the capital However, the Board of Directors reserves the right not to initially invested. calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to Risk management method: Absolute value-at-risk approach. closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of Expected leverage: the assets. 400%. Depending on market conditions, the leverage may be For further information, please refer to our website greater. www.assetmanagement.pictet.

Leverage calculation method: Calculation Day Sum of notional amounts. The calculation and publication of the net asset value as at a Valuation Day will take place on the Valuation Day concerned (the “Calculation Day”).

Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation Day.

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PICTET – ASIAN LOCAL CURRENCY DEBT

Type of Share Initial min. Fees (max %) * Management Service** Depositary Bank I USD 1 million 1.05% 0.40% 0.20% A *** 1.05% 0.40% 0.20% P − 2.10% 0.40% 0.20% R − 3.00% 0.40% 0.20% Z − 0% 0.40% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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13. PICTET – SHORT-TERM EMERGING LOCAL CURRENCY DEBT China may also be performed on any acceptable securities Typical investor profile The Compartment is an actively managed investment vehicle for investors: trading programmes which may be available to the Who wish to invest in fixed-income securities › Compartment in the future as approved by the rele- from issuers located in emerging markets vant regulators from time to time. and/or by holding money market instruments of emerging countries. The Compartment will however respect the following › Who are risk tolerant. limits: Investment policy and objectives  The Compartment may be exposed to non-invest- The Compartment’s objective is to seek income and cap- ment grade debt securities, including up to 10% ital growth by investing mainly in a diversified portfolio of its net assets, in distressed and defaulted debt securities. The Managers intend to operate of bonds, money market instruments and other debt se- the Compartment in a way that high yield debt curities linked to local emerging debt. securities should not exceed 60% of the Com- The Compartment will be mainly exposed to currencies partment’s net assets. However, at times where of the emerging countries, either by direct or indirect in- the Managers consider it as appropriate, high yield debt securities could represent, under ex- vestments such as through financial derivative instru- ceptional circumstances, up to 80% of the Com- ments. partment’s net assets. Emerging countries are defined as those considered, at  The Compartment may invest up to 10% of its the time of investing, as industrially developing coun- net assets in UCITS and other UCIs, including tries by the International Monetary Fund, the World other Compartments of the Fund pursuant to Ar- Bank, the International Finance Corporation (IFC) or one ticle 181 of the 2010 Act. of the leading investment banks. These countries in-  The Compartment may also invest up to 20% clude, but are not limited to, the following: Mexico, of its net assets (both investments combined): Hong Kong, Singapore, Turkey, Poland, the Czech Re- – in asset-backed securities (ABS) and in public, Hungary, Israel, South Africa, Chile, Slovakia, mortgage-backed securities (MBS) in com- Brazil, the Philippines, Argentina, Thailand, South Ko- pliance with Article 2 of the grand-ducal rea, Colombia, Taiwan, Indonesia, India, China, Roma- regulation of 8 February 2008 nia, Ukraine, Malaysia, Croatia, and Russia. and Each direct investment in a debt security will be for a – in Sukuk al Ijarah, Sukuk al Wakalah, Sukuk short/medium duration. The residual duration for each al Mudaraba or any other type of Shariah- investment will not exceed six years. The average resid- compliant fixed-income securities within the ual duration of the portfolio (the “duration”) cannot, limits of the grand-ducal regulation dated 8 however, exceed three years. February 2008.

The Compartment may invest up to 30 % of its net as-  The Compartment will not invest more than 10% of its net assets in shares or any other similar se- sets in bonds and other debt securities denominated in curity, derivative instruments and/or structured RMB through (i) the QFII quota granted to the Managers products (in particular convertible bonds) whose (ii) the RQFII quota granted to the Managers and/or (iii) underlyings are, or offer exposure to, equities or Bond Connect. similar securities. By analogy, investments in undertakings for collective investment whose Investments in China may be performed, inter alia, on main objective is to invest in the assets listed the China Interbank Bond Market (“CIBM”) directly or above are also included in the 10% limit. through the QFII or the RQFII quota granted to the Man- agers or through Bond Connect. Investments in  The Compartment may invest up to 25% of its net assets in structured products, with or

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without embedded derivatives, such as, in par- Reference index: ticular, notes, certificates or any other transfera- JP Morgan GBI-EM Global 1-3 Years 10% Capped ble security whose returns are linked to, among (USD). Used for portfolio composition, risk monitoring, others, an index (including indices on volatility), performance objective and performance measurement. currencies, interest rates, transferable securities, a basket of transferable securities, or an under- The Compartment is designed to offer performance that taking for collective investment, in accordance is likely to be significantly different from that of the with grand-ducal regulation dated 8 February benchmark. 2008.  The Compartment may also invest up to 10% of Exposure to total return swaps, Securities Lending Agree- its net assets in contingent convertible bonds ments, Reverse Repurchase Agreements and Repurchase (“CoCo Bonds”). Agreements By way of derogation to the maximum exposure referred  Investments in Rule 144A securities may not exceed 30% of the Compartment’s net assets. to in the general part of the Prospectus, no more than 20% of the Compartment’s net assets will be subject to  Investments in unlisted securities and in Russia total return swaps. (other than on the Moscow Stock Exchange), will not exceed 10% of the Compartment’s net as- By way of derogation to the maximum exposure referred sets. to in the general part of the Prospectus, no more than The Compartment may use derivative techniques and in- 30% of the Compartment’s net assets will be subject to struments for hedging and/or efficient portfolio manage- Reverse Repurchase Agreements. ment within the limits specified in the investment re- The Compartment does however not expect to be exposed strictions. to Securities Lending Agreements, Repurchase Agree- Financial derivative instruments may include options (in- ments and Reverse Repurchase Agreements. cluding currency options), futures, forward exchange con- The expected level of exposure to total return swaps tracts (including non-deliverable forwards), swaps (such amounts to 5% of the Compartment’s net assets. as but not limited to Credit Default Swaps, Interest Rate Swaps, Credit Default Swap Index and Total Return Risk factors The risks listed below are the most relevant risks of the Swaps). Compartment. Investors should be aware that other risks Under exceptional circumstances, if the manager con- may also be relevant to the Compartment. Please refer siders this to be in the best interest of the Shareholders, to the section "Risk Considerations" for a full description the Compartment may hold up to 100% of its net assets of these risks. in liquidities as amongst others cash deposits, money Counterparty risk market funds (within the above-mentioned 10% limit) › and money market instruments. › Collateral risk The Compartment may enter into Securities Lending › Settlement risk Agreements and Repurchase and Reverse Repurchase › Credit rating risk Agreements in order to increase its capital or its income or to reduce its costs or risks. › Asset liquidity risk

The investment process integrates ESG criteria based on › Investment restriction risk proprietary and third-party research to evaluate invest- › Restricted securities risk ment risks and opportunities. When selecting the Com- › Currency risk partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in › Interest rate risk the Compartment’s portfolio. › Emerging market risk › Political risk

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› Volatility risk Manager: PICTET AM Ltd › QFII risk Sub-managers: › RQFII risk PICTET AM S.A., PICTET AMS › Chinese currency exchange rate risk Reference currency of the Compartment: › CIBM risk USD

› Bond Connect Risk Cut-off time for receipt of orders Subscription › Securities Lending Agreement Risk By 3:00 pm on the relevant Valuation Day. › Repurchase and reverse repurchase agreement risk Redemption By 3:00 pm on the relevant Valuation Day. › Sukuk risk Switch › Financial derivative instruments risk The more restrictive time period of the two Compart- › Structured Finance Securities risk ments concerned. › Contingent Convertibles instruments risk Frequency of net asset value calculation The net asset value will be determined as at each Bank- › High Yield investment risk ing Day (the “Valuation Day”). › Distressed and defaulted debt securities risk. However, the Board of Directors reserves the right not to › Leverage risk calculate the net asset value or to calculate a net asset The capital invested may fluctuate up or down, and in- value that cannot be used for trading purposes due to vestors may not recover the entire value of the capital closure of one or more markets in which the Fund is in- initially invested. vested and/or which it uses to value a material part of the assets. Risk management method: Absolute value-at-risk approach. For further information, please refer to our website www.assetmanagement.pictet. Expected leverage: 350%. Calculation Day Depending on market conditions, the leverage may be The calculation and publication of the net asset value as greater. at a Valuation Day will take place on the Week Day following the relevant Valuation Day (the “Calculation Leverage calculation method: Day”). Sum of notional amounts. Payment value date for subscriptions and redemptions

Within 3 Week Days following the applicable Valuation Day.

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PICTET – SHORT–TERM EMERGING LOCAL CURRENCY DEBT

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14. PICTET – LATIN AMERICAN LOCAL CURRENCY DEBT

Typical investor profile The investments are primarily denominated in the local The Compartment is an actively managed investment ve- currencies of the emerging countries in Latin America. hicle for investors: In all cases, the Compartment’s exposure to these currencies will be at least two-thirds, either by direct or in- › Who wish to invest in fixed-income securities from issuers located in emerging countries of direct investment or by authorised derivative instru- Latin America and/or by holding money market ments. instruments in emerging countries in Latin The Compartment may also invest up to 20% of its as- America. sets in Sukuk al Ijarah, Sukuk al Wakalah, Sukuk al › Who are risk tolerant. Mudaraba or any other type of Shariah-compliant fixed- Investment policy and objectives income securities within the limits of the grand-ducal The Compartment’s objective is to seek income and cap- regulation dated 8 February 2008. ital growth by investing a minimum of two-thirds of its The Compartment may be exposed to non-investment total assets/total wealth in a diversified portfolio of grade debt securities (including distressed and de- bonds and other debt securities linked to Latin Ameri- faulted securities for up to 10% of its net assets). can local emerging debt. In addition, the Compartment may invest up to 10% of Emerging countries in Latin America are defined as its net assets in UCITS and other UCIs, including other those considered, at the time of investing, as industri- Compartments of the Fund pursuant to Article 181 of ally developing countries by the International Monetary the 2010 Act. Fund, the World Bank, the International Finance Corpo- ration (IFC) or one of the leading investment banks. The Compartment will not invest more than 10% of its These countries include, but are not limited to, the fo- assets in shares or any other similar security, derivative llowing: Mexico, Chile, Brazil, Argentina, Colombia, instruments (including warrants) and/or structured prod- Peru, Belize, Bolivia, Costa Rica, Cuba, the Dominican ucts (in particular convertible bonds) whose underliers Republic, Ecuador, El Salvador, Guatemala, Guyana, are, or offer exposure to, equities or similar securities. Honduras, Nicaragua, Paraguay, Panama, Puerto Rico, By analogy, investments in undertakings for collective Suriname, Uruguay and Venezuela. investment whose main objective is to invest in the as- Within the limits of point 7 of § 3 of the investment re- sets listed above are also included in the 10% limit. strictions, the Compartment is authorised to invest up to The Compartment may enter into Securities Lending 100% of its assets in securities issued by any Latin Agreements and Repurchase and Reverse Repurchase American country, even if it is not an OECD member Agreements in order to increase its capital or its income state. or to reduce its costs or risks.

The Compartment may also invest in warrants on trans- The total amount of commitments resulting from cur- ferable securities and indexes and in subscription war- rency transactions made for purposes of speculation and rants and may use currency transactions for a purpose hedging may not exceed 100% of the Compartment’s other than hedging. net assets. These transactions will be conducted as The Compartment may also invest up to 25% of its net Non-Deliverable Forwards, forward contracts or other in- assets, not including the investments in Non-Deliverable struments such as options or currency warrants. To Forwards described below, in structured products, in- achieve this, the Compartment may enter into over-the- cluding in particular credit-linked notes and bonds or counter agreements with leading financial institutions. other transferable securities whose returns are linked to The Compartment may conduct non-deliverable forward the performance of an index, transferable securities or a transactions. A Non-Deliverable Forward is a bilateral fi- basket of transferable securities, or an undertaking for nancial futures contract on an exchange rate between a collective investment. strong currency and an emerging currency. At maturity,

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there will be no delivery of the emerging currency; in- The Compartment is designed to offer performance that stead there is a cash settlement of the contract’s finan- is likely to be significantly different from that of the cial result in the strong currency. benchmark.

The International Swaps and Derivatives Association Exposure to total return swaps, Securities Lending (ISDA) has published standardised documentation for Agreements, Reverse Repurchase Agreements and Re- these transactions, included in the ISDA Master Agree- purchase Agreements ment. The Compartment may only conduct non-delivera- By way of derogation to the maximum exposure referred ble forward transactions with leading financial institu- to in the general part of the Prospectus, no more than tions that specialise in this type of transaction, and with 20% of the Compartment’s net assets will be subject to strict adherence to the standardised provisions of the total return swaps. ISDA Master Agreement. By way of derogation to the maximum exposure referred Pursuant to its investment policy, the Compartment may to in the general part of the Prospectus, no more than hold a significant portion of liquid assets and money 30% of the Compartment’s net assets will be subject to market instruments that are traded regularly and whose Reverse Repurchase Agreements. residual maturity does not exceed 12 months. In addi- The expected level of exposure to total return swaps tion, if the manager deems that it is in the best interest amounts to 5% of the Compartment’s net assets. of the Shareholders, the Compartment may also hold up to 33% of its net assets in liquid assets and money mar- The Compartment does however not expect to be ex- ket instruments that are regularly traded and whose re- posed to Securities Lending Agreements, Repurchase sidual maturity does not exceed 12 months. Agreements and Reverse Repurchase Agreements.

The Compartment may use derivative techniques and in- Risk factors struments for efficient management, within the limits The risks listed below are the most relevant risks of the specified in the investment restrictions. Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer Financial derivative instruments may include options, to the section "Risk Considerations" for a full description futures contracts on financial instruments, options on of these risks. such contracts as well as over-the-counter swaps on various types of financial instruments and Total Return › Counterparty risk Swaps. › Collateral risk The Compartment may conduct credit default swap › Settlement risk transactions for up to 100% of its net assets. › Credit risk Investments in unlisted securities and in Russia, other › Credit rating risk than on the Moscow Stock Exchange will not exceed 10% of the Compartment’s net assets. › Asset liquidity risk

The investment process integrates ESG criteria based on › Investment restriction risk proprietary and third-party research to evaluate invest- › Currency risk ment risks and opportunities. When selecting the Com- › Interest rate risk partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in › Volatility risk the Compartment’s portfolio. › Emerging market risk Reference index: › Concentration risk JP Morgan GBI-EM Global Latin America (USD). Used for portfolio composition, risk monitoring, performance › Political risk objective and performance measurement. › Securities Lending Agreement Risk

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› Repurchase and reverse repurchase agreement Redemption risk By 3:00 pm on the relevant Valuation Day.

› Sukuk risk Switch The more restrictive time period of the two Compart- › Financial derivative instruments risk ments concerned. › Structured Finance Securities risk Frequency of net asset value calculation › High Yield investment risk The net asset value will be determined as at each Bank- › Distressed and defaulted debt securities risk ing Day (the “Valuation Day”). › Leverage risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset The capital invested may fluctuate up or down, and in- value that cannot be used for trading purposes due to vestors may not recover the entire value of the capital closure of one or more markets in which the Fund is in- initially invested. vested and/or which it uses to value a material part of Risk management method: the assets. Absolute value-at-risk approach. For further information, please refer to our website Expected leverage: www.assetmanagement.pictet. 400%. Depending on market conditions, the leverage may be Calculation Day The calculation and publication of the net asset value as greater. at a Valuation Day will take place on the Week Day fol- Leverage calculation method: lowing the relevant Valuation Day (the “Calculation Sum of notional amounts. Day”).

Manager: Calculation of the net asset value PICTET AM Ltd The effect of net asset value corrections described in Sub-Manager: the section “Swing pricing mechanism /Spread” will not PICTET AMS exceed 5%.

Reference currency of the Compartment: Payment value date for subscriptions and redemptions USD Within 3 Week Days following the applicable Valuation Cut-off time for receipt of orders Day. Subscription By 3:00 pm on the relevant Valuation Day.

PICTET – LATIN AMERICAN LOCAL CURRENCY DEBT

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.05% 0.40% 0.20% A *** 1.05% 0.40% 0.20% P − 2.10% 0.40% 0.20% R − 3.00% 0.40% 0.20% Z − 0% 0.40% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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15. PICTET – US HIGH YIELD performance of an index, transferable securities or a basket of transferable securities, or an undertaking for Typical investor profile collective investment, for example. The Compartment is an actively managed investment vehicle for investors: The Compartment may enter into Securities Lending Agreements and Repurchase and Reverse Repurchase › Who wish to invest in high-yield bonds denomi- Agreements in order to increase its capital or its income nated in USD. or to reduce its costs or risks. › Who have medium to high risk tolerance. Under exceptional circumstances, if the manager con- Investment policy and objectives siders this to be in the best interest of the Shareholders, This Compartment invests primarily in a diversified port- the Compartment may hold up to 100% of its net assets folio of high-yield bonds including fixed-rate, variable- in liquidities as amongst others cash deposits, money rate and convertible bonds. market funds (within the above-mentioned 10% limit) The Compartment may also invest in asset-backed secu- and money market instruments. rities (bonds whose real assets guarantee the invest- In addition, the Compartment may invest up to 10% of ment), in debt securitisations (such as but not exclu- its net assets in UCITS and other UCIs, including other sively ABS and MBS) as well as other debt securities in Compartments of the Fund pursuant to Article 181 of compliance with Article 2 of the Luxembourg regulations the 2010 Act. of 8 February 2008. The Compartment will not invest more than 10% of its Investment in ABS and MBS will represent a maximum assets in shares or any other similar security, derivative of 10% of the Compartment’s net assets. instruments (including warrants) and/or structured prod- Likewise, the Compartment may invest up to a maxi- ucts (in particular convertible bonds) whose underliers mum of 10% of its net assets in banking loans that are are or that offer exposure to equities or similar securi- considered (with respect to Articles 2 or 3 and 4 of the ties. Luxembourg regulations of 8 February 2008) as trans- By analogy, investments in undertakings for collective ferable securities or money market instruments listed or investment whose main objective is to invest in the as- traded on regulated markets, within the limits stipulated sets listed above are also included in the 10% limit. by the investment restrictions. The Compartment may use derivative financial tech- Investments in convertible bonds (including contingent niques and instruments for efficient management, convertible bonds (“CoCo Bonds”)) may not exceed 20% within the limits specified in the investment restrictions. of the Compartment’s net assets. Specifically, the Compartment may conduct credit de- In seeking capital appreciation in the reference cur- fault swaps. rency, these investments may be made on all markets, The investment process integrates ESG criteria based on but mainly in securities traded on the US domestic mar- proprietary and third-party research to evaluate invest- ket or in securities of issuers residing in the US and/or ment risks and opportunities. When selecting the Com- whose main business and/or principal registered office partment’s investments, securities of issuers with low are located in the US. ESG characteristics may be purchased and retained in The Compartment may be exposed to non-investment the Compartment’s portfolio. grade debt securities (including distressed and de- Reference index: faulted securities for up to 10% of its net assets). Bloomberg Barclays US High Yield 2% Capped (USD). Used for risk monitoring, performance objective and per- The Compartment’s assets will be mainly denominated formance measurement. in American dollars. The Compartment may also invest in structured products, such as bonds or other transferable securities whose returns are linked to the

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The Compartment is designed to offer performance that The capital invested may fluctuate up or down, and in- is likely to be significantly different from that of the vestors may not recover the entire value of the capital benchmark. initially invested.

Exposure to total return swaps, Securities Lending Risk management method: Agreements, Reverse Repurchase Agreements and Re- Relative value at risk (VaR). The VaR of the Compart- purchase Agreements ment shall be compared with the VaR of the Bloomberg By way of derogation to the maximum exposure referred Barclays US High Yield 2% Capped (USD). to in the general part of the Prospectus, no more than Expected leverage: 20% of the Compartment’s net assets will be subject to 50%. total return swaps. By way of derogation to the maximum exposure referred Depending on market conditions, the leverage may be to in the general part of the Prospectus, no more than greater. 30% of the Compartment’s net assets will be subject to Leverage calculation method: Reverse Repurchase Agreements. Sum of notional amounts.

The Compartment does however not expect to be ex- Manager: posed to total return swaps, Securities Lending Agree- Crescent Capital Group LP ments, Repurchase Agreements and Reverse Repur- Reference currency of the Compartment: chase Agreements. USD

› High Yield investment risk However, the Board of Directors reserves the right not to › Distressed and defaulted debt securities risk calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to Asset liquidity risk › closure of one or more markets in which the Fund is in- › Restricted securities risk vested and/or which it uses to value a material part of the assets. › Interest rate risk › Securities Lending Agreement Risk For further information, please refer to our website www.assetmanagement.pictet. › Repurchase and reverse repurchase agreement risk Calculation Day The calculation and publication of the net asset value as Financial derivative instruments risk › at a Valuation Day will take place on the Week Day fol- › Structured Finance Securities risk lowing the relevant Valuation Day (the “Calculation › Contingent Convertibles instruments risk Day”). › Leverage risk Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation

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Day. the section “Swing pricing mechanism /Spread” will not exceed 3%. Calculation of the net asset value The effect of net asset value corrections described in

PICTET – US HIGH YIELD

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.10% 0.30% 0.05% A *** 1.10% 0.30% 0.05% P − 1.45% 0.30% 0.05% R − 1.75% 0.30% 0.05% Z − 0% 0.30% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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16. PICTET – GLOBAL SUSTAINABLE CREDIT

Typical investor profile In addition, the Compartment may invest up to 10% of The Compartment is an actively managed investment ve- its net assets in UCITS and other UCIs, including other hicle for investors: Compartments of the Fund pursuant to Article 181 of the 2010 Act. › Who wish to invest in fixed-income securities, issued by private companies. Under exceptional circumstances, if the manager con- › Who are risk tolerant. siders this to be in the best interest of the Shareholders, the Compartment may hold up to 100% of its net assets Investment policy and objectives in liquidities as amongst others cash deposits, money This Compartment invests mainly in a diversified portfo- market funds (within the above-mentioned 10% limit) lio of bonds and other debt securities (including con- and money market instruments. vertible bonds) issued by private companies across any sector. The Compartment may use derivative techniques and instruments for hedging and/or efficient portfolio manage- The investment process integrates an analysis of envi- ment, within the limits specified in the investment re- ronmental, social and corporate governance (ESG) fac- strictions. tors, using appropriate information sources, to define the investment universe and evaluate companies Specifically, the Compartment may conduct credit default swaps. The Compartment may invest in any country, including emerging countries. Investments may be denominated in The Compartment may also invest in structured prod- USD or EUR or in other currencies as long as the securi- ucts, such as, in particular, credit-linked notes, certifi- ties are generally hedged in USD. cates or any other transferable security whose returns

are linked to, among others, an index that adheres to The Compartment may invest up to 50% of its net assets the procedures stipulated in Article 9 of the Luxem- in debt securities of the “BB” segment as defined by the bourg regulations of 8 February 2008 (including indexes Standard & Poor’s rating agency or an equivalent rating from other recognised rating agencies, or of equivalent on commodities, precious metals, volatility, etc.), cur- quality according to the manager’s analysis. Securities rencies, interest rates, transferable securities, a basket with those ratings are classified in the higher quality of transferable securities, or an undertaking for collec- range of High Yield securities. If the credit ratings differ tive investment, in compliance with the Luxembourg among several rating sources, the lowest rating will be regulations of 8 February 2008. taken into account. The Compartment may enter into Securities Lending The Managers do not intend to invest in debt securities Agreements and Repurchase and Reverse Repurchase having a credit rating below the “BB” segment. If the Agreements in order to increase its capital or its income credit rating of a security held by the Compartment de- or to reduce its costs or risks. teriorates to below the minimum rating stated above, the The investment process integrates ESG criteria based on security may be kept or sold, at the Manager’s discre- proprietary and third-party research to evaluate invest- tion, in the best interests of the Shareholders. ment risks and opportunities. The Compartment adopts a best in class approach which seeks to invest in securi- On an ancillary basis, the Compartment may also invest ties of issuers with high ESG characteristics while avoid- in government bonds, generally those issued by OECD ing those with low ESG characteristics member countries when required by market conditions, money market instruments, and cash. Reference index: Bloomberg Barclays Global Aggregate Corporate (USD). Investments in convertible bonds will not exceed 20% Used for risk monitoring, performance objective and per- of the Compartment’s net assets. The Compartment will formance measurement. not invest in contingent convertible bonds.

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The Compartment is designed to offer performance that investors may not recover the entire value of the capital is likely to be significantly different from that of the initially invested. benchmark. Risk management method: Exposure to total return swaps, Securities Lending Absolute value-at-risk approach Agreements, Reverse Repurchase Agreements and Re- Expected leverage: purchase Agreements 100%. By way of derogation to the maximum exposure referred to in the general part of the Prospectus, no more than Depending on market conditions, the leverage may be 20% of the Compartment’s net assets will be subject to greater. total return swaps. Leverage calculation method: By way of derogation to the maximum exposure referred Sum of notional amounts. to in the general part of the Prospectus, no more than Managers: 30% of the Compartment’s net assets will be subject to PICTET AM S.A., PICTET AM Ltd Reverse Repurchase Agreements. Reference currency of the Compartment: The Compartment does however not expect to be ex- USD posed to total return swaps, Securities Lending Agree- Cut-off time for receipt of orders ments and Reverse Repurchase Agreements. Subscription The expected level of exposure to Repurchase Agree- By 3:00 pm on the relevant Valuation Day. ments amounts to 5% of the Compartment’s net assets. Redemption Risk factors By 3:00 pm on the relevant Valuation Day. The risks listed below are the most relevant risks of the Switch Compartment. Investors should be aware that other risks The more restrictive time period of the two Compart- may also be relevant to the Compartment. Please refer ments concerned. to the section "Risk Considerations" for a full description Frequency of net asset value calculation of these risks. The net asset value will be determined as at each Bank- › Counterparty risk ing Day (the “Valuation Day”). › Collateral risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › Credit risk value that cannot be used for trading purposes due to › Credit rating risk closure of one or more markets in which the Fund is in- › Interest rate risk vested and/or which it uses to value a material part of the assets. › Securities Lending Agreement Risk For further information, please refer to our website › Repurchase and reverse repurchase agreement risk www.assetmanagement.pictet. › Financial derivative instruments risk Calculation Day The calculation and publication of the net asset value as › Structured Finance Securities risk at a Valuation Day will take place on the Week Day fol- › Leverage risk lowing the relevant Valuation Day (the “Calculation Day”). › High Yield investment risk Payment value date for subscriptions and redemptions › Emerging market risk Within 3 Week Days following the applicable Valuation › Asset liquidity risk Day.

The capital invested may fluctuate up or down, and

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PICTET – GLOBAL SUSTAINABLE CREDIT

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.60% 0.30% 0.05% A *** 0.60% 0.30% 0.05% P − 0.90% 0.30% 0.05% R − 1.25% 0.30% 0.05% Z − 0% 0.30% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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17. PICTET – EUR SHORT TERM HIGH YIELD

Typical investor profile Compartments of the Fund pursuant to Article 181 of The Compartment is an actively managed investment ve- the 2010 Act. hicle for investors: These investments may be made in all markets while › Who wish to invest in high-yield bonds denomi- seeking capital growth in the reference currency. nated in euros. In addition, the Compartment may invest up to 20% of › Who have medium to high risk aversion. its net assets in emerging countries.

Investment policy and objectives The Compartment may be exposed to non-investment This Compartment invests principally in a diversified grade debt securities (including distressed and de- portfolio of bonds and other faulted securities for up to 10% of its net assets).

 high yield, second quality debt securities, The Compartment may also invest in structured prod-  denominated in EUR or in other currencies ucts, such as bonds or other transferable securities as long as the securities are generally whose returns are linked to the performance of an index, hedged in EUR, and transferable securities or a basket of transferable securi-  have a minimum rating, at the time of ac- ties, or an undertaking for collective investment, for ex- quisition, equivalent to “B-”, as defined by ample. Standard & Poor’s or an equivalent rating The Compartment may enter into Securities Lending from other recognised rating agencies. When there is no official rating system, the Board Agreements and Repurchase and Reverse Repurchase of Directors will decide on acquiring trans- Agreements in order to increase its capital or its income ferable securities with identical quality crite- or to reduce its costs or risks. ria. For hedging and for any other purposes, within the lim- These investments will have a short/medium duration. its set out in the chapter” Investment restrictions” of The residual maturity for each investment will not ex- the Prospectus, the Compartment may use all types of ceed six years. The average residual duration of the port- financial derivative instruments traded on a regulated folio (the “duration”) cannot, however, exceed three market and/or over the counter (OTC) provided they are years. contracted with leading financial institutions specialized The choice of investments will not be limited to a partic- in this type of transactions. In particular, the Compart- ular geographic sector neither sector of economic activ- ment may take exposure through any financial derivative ity. However, depending on market conditions, the in- instruments such as but not limited to warrants, futures, vestments may be focused on one country or on a lim- options, swaps (including but not limited to total return ited number of countries and/or one economic activity swaps, contracts for difference) and forwards on any un- sector. derlying in line with the 2010 Act as well as the investment policy of the Compartment, including but not lim- The Compartment may also invest up to 10% of its net ited to, currencies (including non-deliverable forwards), assets in securities pledged by assets, securities of issu- interest rates, transferable securities, basket of transfer- ers enjoying government support, issues securitised by able securities, indices (including but not limited to bonds, and issues securitised by loans and mortgages commodities, precious metals or volatility indices), un- (including the securitisation of such debts). dertakings for collective investment. Investments in convertible bonds (including contingent Specifically, the Compartment may conduct credit de- convertible bonds (“CoCo Bonds”)) may not exceed 20% fault swaps. of the Compartment’s net assets. The Compartment will not invest more than 10% of its In addition, the Compartment may invest up to 10% of assets in shares or any other similar security, financial its net assets in UCITS and other UCIs, including other derivative instruments (including warrants) and/or

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structured products (in particular convertible bonds) Risk factors whose underliers are, or offer exposure to, equities or The risks listed below are the most relevant risks of the similar securities. Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer By analogy, investments in undertakings for collective to the section "Risk Considerations" for a full description investment whose main objective is to invest in the as- of these risks. sets listed above are also included in the 10% limit. › Counterparty risk Under exceptional circumstances, if the manager considers this to be in the best interest of the Shareholders, › Collateral risk the Compartment may hold up to 100% of its net assets › Credit risk in liquidities as amongst others cash deposits, money market funds (within the above-mentioned 10% limit) › Credit rating risk and money market instruments. › High Yield investment risk The investment process integrates ESG criteria based on › Distressed and defaulted debt securities risk proprietary and third-party research to evaluate invest- › Asset liquidity risk ment risks and opportunities. When selecting the Com- partment’s investments, securities of issuers with low › Interest rate risk ESG characteristics may be purchased and retained in › Emerging market risk the Compartment’s portfolio. › Securities Lending Agreement Risk Reference index: › Repurchase and reverse repurchase agreement ICE BofA Euro High Yield Ex Financial BB-B 1-3 Years risk Constrained (EUR). Used for risk monitoring, performance objective and performance measurement. › Financial derivative instruments risk

› Structured Finance Securities risk The Compartment is designed to offer performance that is likely to be significantly different from that of the › Contingent Convertibles instruments risk benchmark. › Leverage risk

Exposure to total return swaps, Securities Lending The capital invested may fluctuate up or down, and in- Agreements, Reverse Repurchase Agreements and Re- vestors may not recover the entire value of the capital purchase Agreements initially invested. By way of derogation to the maximum exposure referred to in the general part of the Prospectus, no more than Risk management method: Relative value at risk (VaR). The VaR of the Compart- 20% of the Compartment’s net assets will be subject to ment shall be compared with the VaR of the ICE BofA total return swaps. Euro High Yield Ex Financial BB-B 1-3 Years Con- By way of derogation to the maximum exposure referred strained (EUR). to in the general part of the Prospectus, no more than Expected leverage: 30% of the Compartment’s net assets will be subject to 50%. Reverse Repurchase Agreements. Depending on market conditions, the leverage may be The Compartment does however not expect to be ex- greater. posed to Securities Lending Agreements and Reverse Leverage calculation method: Repurchase Agreements. Sum of notional amounts. The expected level of exposure to Repurchase Agree- ments amounts to 5% of the Compartment’s net assets.

The expected level of exposure to total return swaps amounts to 5% of the Compartment’s net assets.

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Managers: value that cannot be used for trading purposes due to PICTET AM S.A., PICTET AM Ltd closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of Reference currency of the Compartment: EUR the assets.

Cut-off time for receipt of orders For further information, please refer to our website Subscription www.assetmanagement.pictet. By 3:00 pm on the relevant Valuation Day. Calculation Day Redemption The calculation and publication of the net asset value as By 3:00 pm on the relevant Valuation Day. at a Valuation Day will take place on the Week Day following the relevant Valuation Day (the “Calculation Switch ” The more restrictive time period of the two Compart- Day ). ments concerned. Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation Frequency of net asset value calculation Day. The net asset value will be determined as at each Bank- ing Day (the “Valuation Day”). Calculation of the net asset value The effect of net asset value corrections, more fully de- However, the Board of Directors reserves the right not to scribed in the section “Swing pricing mechanism calculate the net asset value or to calculate a net asset /Spread”, will not exceed 3%.

PICTET – EUR SHORT TERM HIGH YIELD

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 1.00% 0.30% 0.10% A *** 1.00% 0.30% 0.10% P − 1.60% 0.30% 0.10% R − 2.20% 0.30% 0.10% Z − 0% 0.30% 0.10% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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18. PICTET – GLOBAL BONDS FUNDAMENTAL

Typical investor profile of the leading investment banks. These countries in- The Compartment is an actively managed investment ve- clude, but are not limited to, the following: Mexico, hicle for investors: Hong Kong, Singapore, Turkey, Poland, the Czech Re- public, Hungary, Israel, South Africa, Chile, Slovakia, › Who wish to invest in fixed-income securities from issuers located in developed and emerging Brazil, the Philippines, Argentina, Thailand, South Ko- economies. These investments will be denomi- rea, Colombia, Taiwan, Indonesia, India, China, Roma- nated in one of the main currencies or in a cur- nia, Ukraine, Malaysia, Croatia and Russia. rency of an emerging country. In addition, the Compartment may invest up to 10% of › Who are risk tolerant. its net assets in UCITS and other UCIs, including other Investment policy and objectives Compartments of the Fund pursuant to Article 181 of The objective of this Compartment is to seek revenue the 2010 Act. and capital growth. The Compartment may also invest in structured prod- This Compartment invests mainly in a diversified portfo- ucts, such as bonds or other transferable securities lio of bonds and other debt securities issued or guaran- whose returns are linked to the performance of an index, teed by national or local governments in developed or transferable securities or a basket of transferable securi- emerging countries, or by supranational organisations, ties, or an undertaking for collective investment, for ex- without limitation regarding the choice of the currency ample. in which the securities are denominated. The Compartment may enter into Securities Lending The Compartment may invest up to 20% of its net as- Agreements and Repurchase and Reverse Repurchase sets in bonds and other debt securities denominated in Agreements in order to increase its capital or its income RMB through (i) the QFII quota granted to an entity of or to reduce its costs or risks. the Pictet Group (ii) the RQFII quota granted to an en- For hedging and for any other purposes, within the lim- tity of the Pictet Group and/or (iii) Bond Connect. its set out in the chapter” Investment restrictions” of Investments in China may be performed, inter alia, on the the Prospectus, the Compartment may use all types of China Interbank Bond Market (“CIBM”) directly or financial derivative instruments traded on a regulated through the QFII or the RQFII quota granted to the Man- market and/or over the counter (OTC) provided they are agers or through Bond Connect. Investments in China contracted with leading financial institutions specialized may also be performed on any acceptable securities trad- in this type of transactions. In particular, the Compart- ing programmes which may be available to the Compart- ment may take exposure through any financial derivative ment in the future as approved by the relevant regulators instruments such as but not limited to warrants, futures, from time to time. options, swaps (including but not limited to total return swaps, contracts for difference) and forwards on any un- The Compartment’s exposure to certain local currencies derlying in line with the 2010 Act as well as the invest- will be obtained by direct or indirect investments, such ment policy of the Compartment, including but not lim- as via financial derivative instruments. ited to, currencies (including non-deliverable forwards), The manager will select the securities based on a funda- interest rates, transferable securities, basket of transfer- mental approach that takes account of the main macro- able securities, indices (including but not limited to economic indicators (Gross domestic product, popula- commodities, precious metals or volatility indices), un- tion, debt, etc.). dertakings for collective investment.

Emerging countries are defined as those considered, at The total amount of commitments resulting from cur- the time of investing, as industrially developing coun- rency transactions made for purposes of speculation and tries by the International Monetary Fund, the World hedging may not exceed 100% of the Compartment’s Bank, the International Finance Corporation (IFC) or one net assets. These transactions will be conducted as

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Non-Deliverable Forwards, forward contracts or other in- the Compartment’s portfolio. struments such as options or currency warrants. To Reference index: achieve this, the Compartment may enter into over-the- FTSE WBGI All Maturities (USD). Used for risk monitor- counter agreements with leading financial institutions. ing, performance objective and performance measure- The Compartment may conduct non-deliverable forward ment. transactions. A Non-Deliverable Forward is a bilateral financial futures contract on an exchange rate between a The Compartment is designed to offer performance that is likely to be significantly different from that of the strong currency and an emerging currency. At maturity, benchmark. there will be no delivery of the emerging currency; instead there is a cash settlement of the contract’s finan- Exposure to total return swaps, Securities Lending cial result in the strong currency. Agreements, Reverse Repurchase Agreements and Re- The International Swaps and Derivatives Association purchase Agreements By way of derogation to the maximum exposure referred (ISDA) has published standardised documentation for to in the general part of the Prospectus, no more than these transactions, included in the ISDA Master Agree- 20% of the Compartment’s net assets will be subject to ment. The Compartment may only conduct non-delivera- total return swaps. ble forward transactions with leading financial institutions that specialise in this type of transaction, and with By way of derogation to the maximum exposure referred strict adherence to the standardised provisions of the to in the general part of the Prospectus, no more than ISDA Master Agreement. 30% of the Compartment’s net assets will be subject to Reverse Repurchase Agreements. The Compartment may conduct credit default swap transactions for up to 100% of its net assets. The Compartment does however not expect to be exposed to total return swaps, Securities Lending Agree- Investments in unlisted securities and in Russia, other ments, Repurchase Agreements and Reverse Repur- than on the Moscow Stock Exchange, will not exceed chase Agreements. 10% of the Compartment’s net assets.

The Compartment will not invest more than 10% of its Risk factors The risks listed below are the most relevant risks of the assets in shares or any other similar security, financial Compartment. Investors should be aware that other risks derivative instruments (including warrants) and/or struc- may also be relevant to the Compartment. Please refer tured products (in particular convertible bonds) whose to the section "Risk Considerations" for a full description underliers are, or offer exposure, to equities or similar of these risks. securities.

By analogy, investments in undertakings for collective › Counterparty risk investment whose main objective is to invest in the as- › Collateral risk sets listed above are also included in the 10% limit. › Credit risk Under exceptional circumstances, if the manager con- › Credit rating risk siders this to be in the best interest of the Shareholders, the Compartment may hold up to 100% of its net assets › Asset liquidity risk in liquidities as amongst others cash deposits, money › Currency risk market funds (within the above-mentioned 10% limit) › Interest rate risk and money market instruments. › Emerging market risk The investment process integrates ESG criteria based on proprietary and third-party research to evaluate invest- › Risk of investing in the PRC ment risks and opportunities. When selecting the Com- › QFII risk partment’s investments, securities of issuers with low › RQFII risk ESG characteristics may be purchased and retained in

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› Chinese currency exchange rate risk Redemption By 3:00 pm on the relevant Valuation Day. › CIBM risk Switch › Bond Connect risk The more restrictive time period of the two Compart- › Securities Lending Agreement Risk ments concerned.

› Repurchase and reverse repurchase agreement Frequency of net asset value calculation risk The net asset value will be determined as at each Bank- › Financial derivative instruments risk ing Day (the “Valuation Day”). › Structured Finance Securities risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › Leverage risk value that cannot be used for trading purposes due to The capital invested may fluctuate up or down, and in- closure of one or more markets in which the Fund is investors may not recover the entire value of the capital vested and/or which it uses to value a material part of initially invested. the assets.

Risk management method: For further information, please refer to our website Relative value at risk (VaR). The VaR of the Compart- www.assetmanagement.pictet. ment shall be compared with the VaR of the FTSE WBGI All Maturities (USD). Calculation Day The calculation and publication of the net asset value as Expected leverage: at a Valuation Day will take place on the Week Day fol- 50%. lowing the relevant Valuation Day (the “Calculation Depending on market conditions, the leverage may be Day”). greater. Payment value date for subscriptions and redemptions Leverage calculation method: Within 3 Week Days following the applicable Valuation Sum of notional amounts. Day.

Managers: PICTET AM S.A., PICTET AM Ltd

Reference currency of the Compartment: USD

Cut-off time for receipt of orders Subscription By 3:00 pm on the relevant Valuation Day.

PICTET – GLOBAL BONDS FUNDAMENTAL

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.60% 0.20% 0.10% A *** 0.60% 0.20% 0.10% P − 1.20% 0.20% 0.10% R − 1.80% 0.20% 0.10% Z − 0% 0.20% 0.10% J USD 20 million 0.60% 0.20% 0.10% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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19. PICTET – EMERGING CORPORATE BONDS

Typical investor profile regulation dated 8 February 2008. The Compartment is an actively managed investment ve- In addition, the Compartment may invest up to 10% of hicle for investors: its net assets in UCITS and other UCIs, including other › Who wish to invest in debt securities issued by Compartments of the Fund pursuant to Article 181 of companies whose registered headquarters are the 2010 Act. located in, or that conduct a majority of their business in, an emerging country. The Compartment will not invest more than 10% of its assets in shares or similar securities, derivative instru- › Who are risk tolerant. ments (including warrants) and/or structured products Investment policy and objectives (in particular convertible bonds) and/or undertakings for The objective of this Compartment is to seek revenue collective investment (UCIs) whose underlying assets and capital growth by investing primarily in a diversified are, or offer exposure to, shares or similar securities. portfolio of bonds and debt securities issued or guaran- The Compartment may also invest up to 20% of its net teed by companies organised under private or public law assets in contingent convertible bonds (“CoCo Bonds”). (such as public establishments and/or companies that are majority held by the State or its local authorities) The Compartment may be exposed to non-investment and whose registered headquarters are located in, or grade debt securities (including distressed and de- that conduct the majority of their business in, an emerg- faulted securities for up to 10% of its net assets). ing country. The Compartment may also invest in structured products Emerging countries are defined as those considered, at such as bonds or other transferable securities whose re- the time of investing, as industrially developing coun- turns could be, for example, related to the performance tries by the International Monetary Fund, the World of an index in accordance with Article 9 of the Luxem- Bank, the International Finance Corporation (IFC) or one bourg regulations of 8 February 2008, transferable se- of the leading investment banks. These countries in- curities or a basket of transferable securities, or an un- clude, but are not limited to, the following: Mexico, dertaking for collective investment in accordance with Hong Kong, Singapore, Turkey, Poland, the Czech Re- the Luxembourg regulations of 8 February 2008. public, Hungary, Israel, South Africa, Chile, Slovakia, The Compartment may enter into Securities Lending Brazil, the Philippines, Argentina, Thailand, South Ko- Agreements and Repurchase and Reverse Repurchase rea, Colombia, Taiwan, Indonesia, India, China, Roma- Agreements in order to increase its capital or its income nia, Ukraine, Malaysia, Croatia, and Russia. or to reduce its costs or risks. The choice of investments will not be limited to a partic- The Compartment may conduct Non-Deliverable For- ular geographic sector or sector of economic activity. ward. A Non-Deliverable Forward is a bilateral financial However, depending on market conditions, the invest- futures contract on an exchange rate between a strong ments may be focused on one country or on a limited currency and an emerging currency. At maturity, there number of countries and/or one economic activity sec- will be no delivery of the emerging currency; instead tor. there is a cash settlement of the contract’s financial re- Investments in unlisted securities and in Russia, other sult in the strong currency. than on the Moscow Stock Exchange, will not exceed The Compartment may use derivative techniques and in- 10% of the Compartment’s net assets. struments for hedging or for efficient portfolio manage- Investments may be denominated in any currencies. ment within the limits stipulated in the investment restrictions. The Compartment may also invest up to 20% of its assets in Sukuk al Ijarah, Sukuk al Wakalah, Sukuk al Specifically, the Compartment may conduct credit de- Mudaraba or any other type of Shariah-compliant fixed- fault swaps. income securities within the limits of the grand-ducal

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Under exceptional circumstances, if the manager con- › Credit risk siders this to be in the best interest of the Shareholders, › Credit rating risk the Compartment may hold up to 100% of its net assets in liquidities as amongst others cash deposits, money › High Yield investment risk market funds (within the above-mentioned 10% limit) › Distressed and defaulted debt securities risk and money market instruments. › Restricted securities risk The investment process integrates ESG criteria based on › Volatility risk proprietary and third-party research to evaluate investment risks and opportunities. When selecting the Com- › Asset liquidity risk partment’s investments, securities of issuers with low › Investment restriction risk ESG characteristics may be purchased and retained in › Currency risk the Compartment’s portfolio. › Interest rate risk Reference index: JP Morgan CEMBI Broad Diversified (USD). For portfolio › Emerging market risk composition, risk monitoring, performance objective and › Political risk performance measurement. › Risk of investing in Russia The Compartment is designed to offer performance that › Securities Lending Agreement Risk is likely to be significantly different from that of the benchmark. › Repurchase and reverse repurchase agreement risk Exposure to total return swaps, Securities Lending › Sukuk risk Agreements, Reverse Repurchase Agreements and Re- purchase Agreements › Financial derivative instruments risk By way of derogation to the maximum exposure referred › Structured Finance Securities risk to in the general part of the Prospectus, no more than 20% of the Compartment’s net assets will be subject to › Contingent Convertibles instruments risk total return swaps. › Leverage risk By way of derogation to the maximum exposure referred The capital invested may fluctuate up or down, and in- to in the general part of the Prospectus, no more than vestors may not recover the entire value of the capital 30% of the Compartment’s net assets will be subject to initially invested. Reverse Repurchase Agreements. Risk management method: The Compartment does however not expect to be ex- Relative value at risk (VaR). The VaR of the Compart- posed to total return swaps, Securities Lending Agree- ment shall be compared with the VaR of the JP Morgan ments, Repurchase Agreements and Reverse Repur- CEMBI Broad Diversified (USD) chase Agreements. Expected leverage: Risk factors 50%. The risks listed below are the most relevant risks of the Depending on market conditions, the leverage may be Compartment. Investors should be aware that other risks greater. may also be relevant to the Compartment. Please refer Leverage calculation method: to the section "Risk Considerations" for a full description Sum of notional amounts. of these risks. › Counterparty risk › Collateral risk › Settlement risk

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Manager: calculate the net asset value or to calculate a net asset PICTET AM Ltd value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- Sub-Manager: PICTET AMS vested and/or which it uses to value a material part of the assets. Reference currency of the Compartment: USD For further information, please refer to our website www.assetmanagement.pictet. Cut-off time for receipt of orders Subscription Calculation Day By 3:00 pm on the relevant Valuation Day. The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day fol- Redemption By 3:00 pm on the relevant Valuation Day. lowing the relevant Valuation Day (the “Calculation Day”). Switch The more restrictive time period of the two Compart- Payment value date for subscriptions and redemptions ments concerned. Within 3 Week Days following the applicable Valuation Day. Frequency of net asset value calculation The net asset value will be determined as at each Bank- Calculation of the net asset value The effect of net asset value corrections described in ing Day (the “Valuation Day”). the section “Swing pricing mechanism /Spread” will not However, the Board of Directors reserves the right not to exceed 3%.

PICTET – EMERGING CORPORATE BONDS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.25% 0.40% 0.20% A *** 1.25% 0.40% 0.20% P − 2.50% 0.40% 0.20% R − 3.00% 0.40% 0.20% Z − 0% 0.40% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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20. PICTET – EUR SHORT TERM CORPORATE BONDS

Typical investor profile Apart from exposure to euros, the Compartment may in- The Compartment is an actively managed investment ve- vest in any other currency, any geographic region and hicle for investors: any business sector. However, depending on market conditions, the investments may be focused on one › Who wish to invest in the EUR-denominated corporate bonds market. country or on a limited number of countries and/or one economic activity sector. › Who have some aversion to risk. The Compartment may also invest up to 10% of its net Investment policy and objectives assets in asset-backed securities, securitised bond is- This Compartment invests principally in a diversified sues, securitised loan and mortgage issues (including portfolio of bonds and other debt securities (including the securitisation of such debts). money market instruments): Investments in convertible bonds (including contingent  denominated in EUR or in other currencies convertible bonds (“CoCo Bonds”)) will not exceed 20% as long as the securities are generally hedged in EUR; and of the Compartment’s net assets. In addition, the Com- partment may invest up to 10% of its net assets in  investment grade companies; and/or UCITS and other UCIs, including other Compartments of  having a minimum rating, at the time of ac- the Fund pursuant to Article 181 of the 2010 Act. quisition, equivalent to BBB- as defined by the Standard & Poor’s rating agency or an These investments may be made in all markets while equivalent rating from other recognised rat- seeking capital growth in the reference currency. ing agencies. When there is no official rating In addition, the Compartment may invest up to 10% of system, the Board of Directors will decide its net assets in emerging countries. on acquiring transferable securities with identical quality criteria. The Compartment may also invest in structured prod- The Compartment will not invest, at the time of acquisi- ucts, such as bonds or other transferable securities tion, in bonds that have a rating of less than B- as de- whose returns may for example be linked to the perfor- fined by the Standard & Poor’s rating agency or an mance of an index, transferable securities or a basket of equivalent rating from other recognised rating agencies. transferable securities, or a UCI.

Investments in bonds with a rating of less than BBB- The Compartment may enter into Securities Lending (that is, non-investment grade) as defined by the Stand- Agreements and Repurchase and Reverse Repurchase ard & Poor’s rating agency (or an equivalent rating from Agreements in order to increase its capital or its income other recognised rating agencies) cannot exceed 25% of or to reduce its costs or risks. the net assets of the Compartment. For hedging and for any other purposes, within the lim- If the credit rating of a security held by the Compart- its set out in the chapter” Investment restrictions” of ment deteriorates to non-investment grade, the security the Prospectus, the Compartment may use all types of may be kept or sold, at the Manager’s discretion, in the financial derivative instruments traded on a regulated best interests of the Shareholders. market and/or over the counter (OTC) provided they are contracted with leading financial institutions specialized If the credit ratings differ among several rating agencies, in this type of transactions. In particular, the Compart- the highest rating will be taken into account. ment may take exposure through any financial derivative Each direct investment in a debt security will be for a instruments such as but not limited to warrants, futures, short/medium duration. The residual maturity for each options, swaps (including but not limited to total return investment should not exceed 6 years. The average re- swaps, contracts for difference) and forwards on any un- sidual duration of the portfolio (the “duration”) cannot, derlying in line with the 2010 Act as well as the invest- however, exceed three years. ment policy of the Compartment, including but not

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limited to, currencies (including non-deliverable for- to in the general part of the Prospectus, no more than wards), interest rates, transferable securities, basket of 30% of the Compartment’s net assets will be subject to transferable securities, indices (including but not lim- Reverse Repurchase Agreements. ited to commodities, precious metals or volatility indi- The Compartment does however not expect to be ex- ces), undertakings for collective investment. posed to total return swaps, Securities Lending Agree- Specifically, the Compartment may conduct credit de- ments, and Reverse Repurchase Agreements. fault swaps. The expected level of exposure to Repurchase Agree- The Compartment will not invest more than 10% of its ments amounts to 5% of the Compartment’s net assets. assets in shares or any other similar security, financial Risk factors derivative instruments (including warrants) and/or struc- The risks listed below are the most relevant risks of the tured products (in particular convertible bonds) whose Compartment. Investors should be aware that other risks underliers are or that offer exposure to equities or simi- may also be relevant to the Compartment. Please refer lar securities. to the section "Risk Considerations" for a full description By analogy, investments in undertakings for collective of these risks. investment whose main objective is to invest in the as- › Counterparty risk sets listed above are also included in the 10% limit. › Collateral risk Under exceptional circumstances, if the manager considers this to be in the best interest of the Shareholders, › Credit risk the Compartment may hold up to 100% of its net assets › Credit rating risk in liquidities as amongst others cash deposits, money › Interest rate risk market funds (within the above-mentioned 10% limit) and money market instruments. › Emerging market risk

The investment process integrates ESG criteria based on › Securities Lending Agreement Risk proprietary and third-party research to evaluate invest- › Repurchase and reverse repurchase agreement ment risks and opportunities. When selecting the Com- risk partment’s investments, securities of issuers with low › Financial derivative instruments risk ESG characteristics may be purchased and retained in the Compartment’s portfolio. › Structured Finance Securities risk

Reference index: › Contingent Convertibles instruments risk Bloomberg Barclays Euro-Aggregate Corporate 1-3 Years › Leverage risk A-BBB (EUR). Used for portfolio composition, risk monitoring, performance objective and performance measure- The capital invested may fluctuate up or down, and in- ment. vestors may not recover the entire value of the capital initially invested. The Compartment is designed to offer performance that Risk management method: is likely to be somewhat similar to that of the bench- Relative value at risk (VaR). The VaR of the Compart- mark. ment shall be compared with the VaR of the Bloomberg Exposure to total return swaps, Securities Lending Barclays Euro Aggregate Corporate 1-3 Years A-BBB Agreements, Reverse Repurchase Agreements and Re- (EUR). purchase Agreements Expected leverage: By way of derogation to the maximum exposure referred 50%. to in the general part of the Prospectus, no more than Depending on market conditions, the leverage may be 20% of the Compartment’s net assets will be subject to greater. total return swaps.

By way of derogation to the maximum exposure referred

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Leverage calculation method: However, the Board of Directors reserves the right not to Sum of the notional amounts. calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to Managers: PICTET AM S.A., PICTET AM Ltd closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of Reference currency of the Compartment: the assets. EUR For further information, please refer to our website Cut-off time for receipt of orders www.assetmanagement.pictet. Subscription By 3:00 pm on the relevant Valuation Day. Calculation Day The calculation and publication of the net asset value as Redemption at a Valuation Day will take place on the Week Day fol- By 3:00 pm on the relevant Valuation Day. lowing the relevant Valuation Day (the “Calculation Switch Day”). The more restrictive time period of the two Compart- ments concerned. Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation Frequency of net asset value calculation Day. The net asset value will be determined as at each Bank- ing Day (the “Valuation Day”).

PICTET – EUR SHORT TERM CORPORATE BONDS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.60% 0.30% 0.10% A *** 0.60% 0.30% 0.10% P − 0.90% 0.30% 0.10% R − 1.25% 0.30% 0.10% Z − 0% 0.30% 0.10% EUR 100 mil- J 0.29% 0.30% 0.10% lion *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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21. PICTET – SHORT TERM EMERGING CORPORATE BONDS

Typical investor profile The Compartment may also invest up to 20% of its as- The Compartment is an actively managed investment ve- sets in Sukuk al Ijarah, Sukuk al Wakalah, Sukuk al hicle for investors: Mudaraba or any other type of Shariah-compliant fixed- income securities within the limits of the grand-ducal › Who wish to invest in the debt securities of issuers located in emerging markets or which of- regulation dated 8 February 2008. fer exposure to emerging countries. Except for geographic allocation, the choice of invest- › Who have medium to high risk tolerance. ments will not be limited to a particular sector of economic activity or a specific currency. However, depend- Investment policy and objectives ing on market conditions, the investments may be fo- The objective of this Compartment is to seek revenue and capital growth by investing primarily in a portfolio of cused on one country or on a limited number of countries and/or one economic activity sector and/or one cur- bonds and other debt securities (including money market instruments) of any kind (including convertible rency. bonds) issued or guaranteed by private or public compa- Investments in unlisted securities and investments in nies (such as public institutions and/or companies that Russia other than on the Moscow Stock Exchange will are majority held by a state or its local authorities) that not exceed 10% of the Compartment’s net assets. are headquartered or conduct the majority of their busi- In addition, the Compartment may invest up to 10% of ness in an emerging country. its net assets in UCITS and other UCIs, including other Emerging countries are defined as those considered, at Compartments of the Fund pursuant to Article 181 of the time of investing, as industrially developing coun- the 2010 Act. tries by the International Monetary Fund, the World The Compartment will not invest more than 10% of its Bank, the International Finance Corporation (IFC) or one net assets in shares or similar securities, derivative in- of the leading investment banks. These countries instruments (including warrants) and/or structured prod- clude, but are not limited to, the following: Mexico, ucts (in particular convertible bonds) and/or UCIs for Hong Kong, Singapore, Turkey, Poland, the Czech Re- which the underlying asset is stocks, or which offer ex- public, Hungary, Israel, South Africa, Chile, Slovakia, posure to shares or similar securities. Brazil, the Philippines, Argentina, Thailand, South Ko- rea, Colombia, Taiwan, Indonesia, India, China, Roma- The Compartment may also invest in structured products nia, Ukraine, Malaysia, Croatia, and Russia. such as bonds or other transferable securities whose returns could be, for example, related to the performance Each direct investment in a debt security will be for a of an index in accordance with Article 9 of the Luxem- short/medium duration. The residual duration for each bourg regulations of 8 February 2008, transferable se- investment will not exceed six years. The average resid- curities or a basket of transferable securities, or an un- ual duration of the portfolio (the “duration”) cannot, dertaking for collective investment in accordance with however, exceed three years. the Luxembourg regulations of 8 February 2008. This Compartment may also invest in high-yield bonds The Compartment may enter into Securities Lending including fixed-rate, variable-rate or convertible bonds. Agreements and Repurchase and Reverse Repurchase The Compartment may invest up to 10% of its net as- Agreements in order to increase its capital or its income sets in bonds from issuers “in distress”. The Compart- or to reduce its costs or risks. ment may invest up to a maximum of 10% of its net assets in banking loans that are considered (under Articles The Compartment may use derivative techniques and in- 3 and 4 of the Luxembourg regulations of 8 February struments for hedging or for efficient portfolio manage- 2008) as money market instruments listed or traded on ment within the limits stipulated in the investment re- regulated markets, within the limits stipulated by the in- strictions. vestment restrictions. In particular, the Compartment may, among other

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investments but not exclusively, invest in warrants, fu- Reverse Repurchase Agreements. tures, options, swaps (such as total return swaps, con- The Compartment does however not expect to be ex- tracts for difference and credit default swaps) and for- posed to total return swaps, Securities Lending Agree- ward contracts with underlying assets compliant with ments, Repurchase Agreements and Reverse Repur- the 2010 Act and the Compartment’s investment policy, chase Agreements. among others, currencies (including Non-Deliverable Forwards), interest rates, securities, a basket of securi- Risk factors ties, and indexes. The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks The Compartment may conduct Non-Deliverable For- may also be relevant to the Compartment. Please refer wards. A Non-Deliverable Forward is a bilateral financial to the section "Risk Considerations" for a full description futures contract on an exchange rate between a strong of these risks. currency and an emerging currency. At maturity, there will be no delivery of the emerging currency; instead › Counterparty risk there is a cash settlement of the contract’s financial re- › Collateral risk sult in the strong currency. › Settlement risk Under exceptional circumstances, if the manager con- › Credit risk siders this to be in the best interest of the Shareholders, the Compartment may hold up to 100% of its net assets › Credit rating risk in liquidities as amongst others cash deposits, money › High Yield investment risk market funds (within the above-mentioned 10% limit) and money market instruments. › Distressed and defaulted debt securities risk. Restricted securities risk The investment process integrates ESG criteria based on › proprietary and third-party research to evaluate invest- › Asset liquidity risk ment risks and opportunities. When selecting the Com- › Investment restriction risk partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in › Currency risk the Compartment’s portfolio. › Interest rate risk Reference index: › Emerging market risk JP Morgan CEMBI Broad Diversified 1-3 Years (USD). › Political risk Used for portfolio composition, risk monitoring, performance objective and performance measurement. › Risk of investing in Russia

› Securities Lending Agreement Risk The Compartment is designed to offer performance that is likely to be somewhat similar to that of the bench- › Repurchase and reverse repurchase agreement mark. risk › Sukuk risk Exposure to total return swaps, Securities Lending Agreements, Reverse Repurchase Agreements and Re- › Financial derivative instruments risk purchase Agreements › Structured Finance Securities risk By way of derogation to the maximum exposure referred to in the general part of the Prospectus, no more than › Leverage risk 20% of the Compartment’s net assets will be subject to The capital invested may fluctuate up or down, and in- total return swaps. vestors may not recover the entire value of the capital By way of derogation to the maximum exposure referred initially invested. to in the general part of the Prospectus, no more than Risk management method: 30% of the Compartment’s net assets will be subject to Absolute value-at-risk approach.

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Expected leverage: Banking Day (the “Valuation Day”). 50% However, the Board of Directors reserves the right not to Depending on market conditions, the leverage may be calculate the net asset value or to calculate a net asset greater. value that cannot be used for trading purposes due to Leverage calculation method: closure of one or more markets in which the Fund is in- Sum of notional amounts. vested and/or which it uses to value a material part of Manager: the assets. PICTET AM Ltd For further information, please refer to our website Sub-Manager: www.assetmanagement.pictet. PICTET AMS Calculation Day Reference currency of the Compartment: The calculation and publication of the net asset value as USD at a Valuation Day will take place on the Week Day following the relevant Valuation Day (the “Calculation Cut-off time for receipt of orders ”) Subscription Day . By 3:00 pm on the relevant Valuation Day. Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation Redemption By 3:00 pm on the relevant Valuation Day. Day.

Switch Calculation of the net asset value The more restrictive time period of the two Compart- The effect of net asset value corrections, more fully de- ments concerned. scribed in the section “Swing pricing mechanism /Spread”, will not exceed 3%. Frequency of net asset value calculation The net asset value will be determined as at each

PICTET – SHORT TERM EMERGING CORPORATE BONDS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.90% 0.40% 0.20% A *** 0.90% 0.40% 0.20% P − 1.80% 0.40% 0.20% R − 2.50% 0.40% 0.20% Z − 0% 0.40% 0.20% j USD 100 million 0.90% 0.40% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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22. PICTET – CHINESE LOCAL CURRENCY DEBT

Typical investor profile Managers or through Bond Connect. Investments in The Compartment is an actively managed investment ve- China may also be performed on any acceptable securi- hicle for investors: ties trading programmes which may be available to the › Who wish to invest in fixed-income securities, Compartment in the future as approved by the relevant money-market instruments and deposits issued regulators from time to time. in Renminbi. The Compartment may invest up to 10% of its net as- › Who are risk tolerant. sets in contingent convertible bonds (“CoCo Bonds”).

Investment policy and objectives The Compartment may also invest up to 10% of its net The objective of this Compartment is to seek revenue assets, not including the investments in non-deliverable and capital growth by primarily investing in: forwards described below, in structured products, in-  bonds and other debt securities denomi- cluding in particular credit linked notes and bonds or nated in Renminbi (RMB) (including but not other transferable securities whose returns are linked to limited to bonds issued or guaranteed by the performance of an index, transferable securities or a governments or companies), basket of transferable securities, or an undertaking for  deposits, and collective investment.  money market instruments denominated in In addition, the Compartment may invest up to 10% of Renminbi (RMB). its net assets in UCITS and other UCIs, including other Investment in debt securities and money-market instru- Compartments of the Fund pursuant to Article 181 of ments in RMB may be conducted in CNY (onshore the 2010 Act. Renminbi, the Chinese currency only used in mainland The Compartment will not invest more than 10% of its China), or in CNH (offshore Renminbi, generally availa- assets in shares or any other similar security, derivative ble in Hong Kong). Exposure to non-RMB denominated financial instruments (including warrants) and/or struc- assets may be hedged to help maintain a currency expo- tured products (in particular convertible bonds) whose sure in RMB. The Compartment will be primarily ex- underliers are or that offer exposure to equities or simi- posed to CNY and/or CNH, directly or indirectly. lar securities.

Within the limits of point 7 of § 3 of the investment re- By analogy, investments in undertakings for collective strictions, the Compartment is authorised to invest up to investment whose main objective is to invest in the 100% of its assets in transferable securities and money- above-listed assets are also included in the 10% limit. market instruments issued or guaranteed by the Chinese The Compartment may enter into repurchase and reverse state, and/or its regional public authorities. repurchase transactions in order to increase its capital In order to achieve its investment objective, investments or its income or to reduce its costs or risks. may be focused on one currency and/or one economic For hedging and for any other purposes, within the lim- sector and/or a sole country (China). its set out in the chapter” Investment restrictions” of The Compartment may invest up to 100% of its net as- the Prospectus, the Compartment may use all types of sets in bonds and other debt securities denominated in financial derivative instruments traded on a regulated RMB through (i) the QFII quota granted to an entity of market and/or over the counter (OTC) provided they are the Pictet Group (subject to a maximum of 35% of its contracted with leading financial institutions specialized net assets) (ii) the RQFII quota granted to an entity of in this type of transactions. In particular, the Compart- the Pictet Group and/or (iii) Bond Connect ment may take exposure through any financial derivative Investments in China may be performed, inter alia, on instruments such as but not limited to warrants, futures, the China Interbank Bond Market (“CIBM”) directly or options, swaps (including but not limited to total return through the QFII or the RQFII quota granted to the swaps, contracts for difference) and forwards on any

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underlying in line with the 2010 Act as well as the in- subscriptions to the Compartment. vestment policy of the Compartment, including but not For assets invested in local Chinese securities pursuant limited to, currencies (including non-deliverable for- to an RQFII license (restricted to open-ended funds), wards), interest rates, transferable securities, basket of the local regulator requests that the RQFII name be transferable securities, indices (including but not lim- used to trade securities and other accounts on behalf of ited to commodities, precious metals or volatility indi- the Fund. Securities will thus be registered in the name ces), undertakings for collective investment. of “Pictet Asset Management Limited - Pictet-Chinese The total amount of commitments resulting from cur- Local Currency Debt”, with the Compartment recognised rency transactions made for purposes of speculation and as the beneficial owner of the securities. The Depositary hedging may not exceed 100% of the Compartment’s Bank must ensure that the sub-custodian bank has net assets. These transactions will be conducted by taken the appropriate steps to ensure proper custody of means of non-deliverable forwards, forward contracts or the Compartment’s assets, including the keeping of rec- other instruments such as options or currency warrants. ords that clearly show that the Compartment’s assets are To achieve this, the Compartment may enter into over- held in its name, and are held separately from the other the-counter agreements with leading financial institu- assets of the sub-custodian bank. Investors’ attention is tions. drawn to the fact that the Compartment may incur losses resulting from the acts or omissions of the sub- The Compartment may conduct non-deliverable forward custodian bank when performing or settling transactions transactions. A Non-Deliverable Forward is a bilateral fi- or when transferring money or securities. nancial futures contract on an exchange rate between a strong currency and an emerging currency. At maturity, The investment process integrates ESG criteria based on there will be no delivery of the emerging currency; in- proprietary and third-party research to evaluate invest- stead there is a cash settlement of the contract’s finan- ment risks and opportunities. When selecting the Com- cial result in the strong currency. partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in The International Swaps and Derivatives Association the Compartment’s portfolio. (ISDA) has published standardised documentation for these transactions, included in the ISDA Master Agree- Reference index: ment. The Compartment may only conduct non-delivera- Bloomberg Barclays China Composite (CNH). Used for ble forward transactions with leading financial institu- performance objective and performance measurement. tions that specialise in this type of transaction, and with strict adherence to the standardised provisions of the The portfolio composition is not constrained relative to ISDA master agreement. the benchmark, so the similarity of the Compartment’s performance to that of the benchmark may vary. The Compartment may conduct credit default swap transactions for up to 100% of its net assets. Exposure to total return swaps, Reverse Repurchase Agreements and Repurchase Agreements Under exceptional circumstances, if the manager con- By way of derogation to the maximum exposure referred siders this to be in the best interest of the Shareholders, to in the general part of the Prospectus, no more than the Compartment may hold up to 100% of its net assets 20% of the Compartment’s net assets will be subject to in liquidities as amongst others cash deposits, money total return swaps. market funds (within the above-mentioned 10% limit) By way of derogation to the maximum exposure referred and money market instruments. to in the general part of the Prospectus, no more than The Compartment may be exposed to non-investment 30% of the Compartment’s net assets will be subject to grade debt securities (including distressed and de- Reverse Repurchase Agreements. faulted securities for up to 10% of its net assets). The Compartment does however not expect to be ex- If the Compartment were to reach its maximum size and posed to total return swaps, securities lending Repur- could thus no longer be effectively managed, the Board chase Agreements and Reverse Repurchase Agreements. of Directors reserves the right to temporarily limit

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Risk factors The capital invested may fluctuate up or down, and in- The risks listed below are the most relevant risks of the vestors may not recover the entire value of the capital Compartment. Investors should be aware that other risks initially invested. may also be relevant to the Compartment. Please refer Risk management method: to the section "Risk Considerations" for a full description Absolute value-at-risk approach. of these risks. Expected leverage: › Counterparty risk 100%. Depending on market conditions, the leverage may be › Collateral risk greater. › Settlement risk Leverage calculation method: Sum of notional amounts. › Credit risk Manager: › Credit rating risk PICTET AM Ltd › High Yield investment risk Sub-managers: › Distressed and defaulted debt securities risk. PICTET AM S.A., PICTET AMS, PICTET AM HK › Volatility risk Reference currency of the Compartment: RMB (CNH) › Asset liquidity risk Cut-off time for receipt of orders › Investment restriction risk Subscription By 3:00 pm on the Banking Day preceding the relevant Currency risk › Valuation Day. Interest rate risk › Redemption › Emerging market risk By 3:00 pm on the Banking Day preceding the relevant Valuation Day. › Concentration risk Switch › Political risk The most restrictive time period of the two Compart- ments concerned. › Tax risk Frequency of net asset value calculation › Trading venues risk The net asset value will be determined as at each Bank- › Risk of investing in the PRC ing Day (the “Valuation Day”). › QFII risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › RQFII risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- Chinese currency exchange rate risk › vested and/or which it uses to value a material part of › CIBM risk the assets. › Bond Connect risk For further information, please refer to our website www.assetmanagement.pictet. › Repurchase and reverse repurchase agreement Calculation Day risk The calculation and publication of the net asset value as › Financial derivative instruments risk at a Valuation Day will take place on the Valuation Day concerned (the “Calculation Day”). › Structured Finance Securities risk › Contingent Convertibles instruments risk › Leverage risk

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Payment value date for subscriptions and redemptions Subscriptions Within 2 Week Days following the applicable Valuation Day.

Redemptions Within 4 Week Days following the applicable Valuation Day.

PICTET – CHINESE LOCAL CURRENCY DEBT

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I RMB 5 million 1.10% 0.40% 0.20% A *** 1.10% 0.40% 0.20% P − 2.20% 0.40% 0.20% R − 3.00% 0.40% 0.20% Z − 0% 0.40% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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23. PICTET – ABSOLUTE RETURN FIXED INCOME

Typical investor profile The Compartment may also invest up to 20% of its net The Compartment is an actively managed investment ve- assets in bonds and other debt securities denominated hicle for investors: in RMB through (i) the QFII quota granted to an entity of the Pictet Group (ii) the RQFII quota granted to an › Who wish to invest in an internationally well-diversified portfolio that includes bonds, other entity of the Pictet Group and/or (iii) Bond Connect. fixed-income instruments and currencies. Investments in China may be performed, inter alia, on the › Who are willing to bear variations in market China Interbank Bond Market (“CIBM”) directly or value and thus have a low to medium aversion through the QFII or the RQFII quota granted to the Man- to risk. agers or through Bond Connect. Investments in China Investment policy and objectives may also be performed on any acceptable securities trad- The objective of this Compartment is to achieve positive ing programmes which may be available to the Compart- absolute returns by investing primarily in any form of ment in the future as approved by the relevant regulators debt securities (including but not limited to government from time to time. or corporate bonds, convertible bonds, inflation-indexed The Compartment may be exposed to non-investment bonds,), money market instruments and currencies. grade debt securities (including distressed and defaulted securities for up to 10% of its net assets).

The Compartment will thus invest primarily as follows: The Compartment may also invest up to 20% of its net assets in contingent convertible bonds (“CoCo Bonds”).  directly in the securities/asset classes listed above; and/or The Compartment may also invest in structured products, such as bonds or other transferable securities  in transferable securities (such as structured products, as described below) linked to per- whose returns are linked to the performance of an index, formance or offering exposure to the securi- transferable securities or a basket of transferable securities/asset classes mentioned in the preced- ties, or an undertaking for collective investment, for ex- ing paragraph; and/or ample.

 via financial derivative instruments whose To achieve its investment objective and through the use underliers are the securities mentioned in of financial derivative instruments, the Compartment the preceding paragraph or assets offering can hold a significant portion of liquid assets (such as exposure to these securities/asset classes. deposits and money market instruments).

The Compartment may use techniques and instruments The Compartment may invest in any country (including on transferable securities and money market instru- emerging countries), in any economic sector and in any ments (such as Securities Lending Agreements and re- currency. However, depending on market conditions, the purchase and reverse repurchase transactions) in order investments may be focused on one country or on a lim- to increase its capital or its income, or to reduce costs ited number of countries and/or one economic activity or risks. sector and/or one currency. The Compartment may invest up to 10% of its net as- The Compartment may also invest up to 20% of its net sets in UCITS and other UCIs, including other Compart- assets in asset-backed securities (ABS) and in mort- ments of the Fund pursuant to Article 181 of the 2010 gage-backed securities (MBS). Investments in ABS and Act. MBS are limited to covered bonds (e.g. Pfandbriefe) or For hedging and for any other purposes, within the lim- bonds issued by government sponsored entities (e.g. its set out in the chapter” Investment restrictions” of Fannie Mae, Ginnie Mae), and their derivatives. the Prospectus, the Compartment may use all types of financial derivative instruments traded on a regulated

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market and/or over the counter (OTC) provided they are The portfolio composition is not constrained relative to contracted with leading financial institutions specialized the benchmark, so the similarity of the Compartment’s in this type of transactions. In particular, the Compart- performance to that of the benchmark may vary. ment may take exposure through any financial derivative Exposure to total return swaps, Reverse Repurchase instruments such as but not limited to warrants, futures, Agreements and Repurchase Agreements options, swaps (including but not limited to total return By way of derogation to the maximum exposure referred swaps, contracts for difference) and forwards on any un- to in the general part of the Prospectus, no more than derlying in line with the 2010 Act as well as the invest- 20% of the Compartment’s net assets will be subject to ment policy of the Compartment, including but not lim- total return swaps. ited to, currencies (including non-deliverable forwards), By way of derogation to the maximum exposure referred interest rates, transferable securities, basket of transfer- to in the general part of the Prospectus, no more than able securities, indices (including but not limited to 30% of the Compartment’s net assets will be subject to commodities, precious metals or volatility indices), un- Reverse Repurchase Agreements. dertakings for collective investment. The Compartment does however not expect to be ex- The Compartment may conduct non-deliverable forward posed to securities lending Repurchase Agreements and transactions. A Non-Deliverable Forward is a bilateral fi- Reverse Repurchase Agreements. nancial futures contract on an exchange rate between a strong currency and an emerging currency. At maturity, The expected level of exposure to total return swaps there will be no delivery of the emerging currency; in- amounts to 5% of the Compartment’s net assets. stead there is a cash settlement of the contract’s financial result in the strong currency. Risk factors The risks listed below are the most relevant risks of the The International Swaps and Derivatives Association Compartment. Investors should be aware that other risks (ISDA) has published standardised documentation for may also be relevant to the Compartment. Please refer these transactions, included in the ISDA Master Agree- to the section "Risk Considerations" for a full description ment. The Compartment may only conduct non-delivera- of these risks. ble forward transactions with leading financial institutions that specialise in this type of transaction, and with › Counterparty risk strict adherence to the standardised provisions of the › Collateral risk ISDA Master Agreement. › Credit risk Under exceptional circumstances, if the manager considers this to be in the best interest of the Shareholders, › High Yield investment risk the Compartment may hold up to 100% of its net assets › Distressed and defaulted debt securities risk. in liquidities as amongst others cash deposits, money › Currency risk market funds (within the above-mentioned 10% limit) and money market instruments. › Interest rate risk

The investment process integrates ESG criteria based on › Emerging market risk proprietary and third-party research to evaluate invest- › Political risk ment risks and opportunities. When selecting the Com- › Risk of investing in the PRC partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in › QFII risk the Compartment’s portfolio. › RQFII risk Reference index: › Chinese currency exchange rate risk ICE BofA SOFR Overnight Rate Index (USD). Used for performance measurement. › CIBM risk › Bond Connect Risk

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› Securities Lending Agreement Risk › Leverage risk › Repurchase and reverse repurchase agreement The capital invested may fluctuate up or down, and in- risk vestors may not recover the entire value of the capital › Financial derivative instruments risk initially invested. › Structured Finance Securities risk Risk management method: Absolute value-at-risk approach. › Contingent Convertibles instruments risk Expected leverage: Frequency of net asset value calculation 400%. The net asset value will be determined as at each Bank- Depending on market conditions, the leverage may be ing Day (the “Valuation Day”). greater. However, the Board of Directors reserves the right not to Leverage calculation method: calculate the net asset value or to calculate a net asset Sum of notional amounts. value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- Managers: PICTET AM S.A., PICTET AM Ltd vested and/or which it uses to value a material part of the assets. Reference currency of the Compartment: USD For further information, please refer to our website www.assetmanagement.pictet. Cut-off time for receipt of orders Subscription Calculation Day By 12:00 noon on the relevant Valuation Day. The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day fol- Redemption lowing the relevant Valuation Day (the “ By 12:00 noon, on the relevant Valuation Day. Calculation Day”). Switch The more restrictive time period of the two Compart- Payment value date for subscriptions and redemptions ments concerned. Within 3 Week Days following the applicable Valuation Day.

PICTET – ABSOLUTE RETURN FIXED INCOME

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.60% 0.30% 0.20% A *** 0.60% 0.30% 0.20% P − 1.20% 0.30% 0.20% R − 1.65% 0.30% 0.20% Z − 0% 0.30% 0.20% J USD 50 million 0.60% 0.30% 0.20% IX USD 1 million 0.90% 0.30% 0.20% PX − 1.80% 0.30% 0.20% RX − 2.50% 0.30% 0.20% ZX − 0% 0.30% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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Performance fee: The Manager will receive a performance fee, accrued as at each Valuation Day, paid yearly, based on the net asset value (net asset value), equivalent to 10 % of the performance of the NAV per Share, (measured against the High- Water Mark) over the performance of the index described in the below table for each Share class, since the last performance fee payment. No performance fee will be payable for X Shares.

Type of Share Index

Share Classes denominated in USD and EUR LIBOR USD Overnight + 1.5%

Hedged Share Classes denominated in EUR EONIA + 1.5%

Hedged Share Classes denominated in CHF LIBOR CHF Spot Next + 1.5%

Hedged Share Classes denominated in JPY LIBOR JPY Spot Next + 1.5%

Hedged Share Classes denominated in GBP LIBOR GBP Overnight + 1.5% The performance fee is calculated on the basis of the NAV after deduction of all expenses, liabilities, and management fees (but not performance fee), and is adjusted to take account of all subscriptions and redemptions.

The performance fee is calculated by reference to the outperformance of the NAV per Share adjusted for subscriptions into and redemptions out of the relevant Classes of Shares during the calculation period. No performance fee will be due if the NAV per Share before performance fee turns out to be below the High-Water Mark for the calculation period in question.

The High-Water Mark is defined as the greater of the following two figures:

› The last highest Net Asset Value per Share on which a performance fee has been paid and; › The initial NAV per Share. The High-Water Mark will be decreased by the dividends paid to Shareholders.

Provision will be made for this performance fee as at each Valuation Day. If the NAV per Share decreases during the calculation period, the provisions made in respect of the performance fee will be reduced accordingly. If these provisions fall to zero, no performance fee will be payable.

If the return of the NAV per Share (measured against the High-Water Mark) is positive, but the Index return is negative, the calculated performance fee per Share will be limited to the return of the NAV per Share in order to avoid that performance fee calculation implies that the NAV per Share after performance fee be inferior to the High-Water Mark.

For the Shares present into the Class of Shares at the beginning of the calculation period, performance fee will be calculated by reference to the performance against the High-Water Mark.

For the Shares subscribed during the calculation period, performance fee will be calculated by reference to the performance from the subscription date to the end of the calculation period. Furthermore, performance fee per Share will be capped to the performance fee per Share related to the Shares present into the Class of Shares at the beginning of the calculation period.

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For the Shares redeemed during the calculation period, performance fee is determined based upon the “first in, first out” method where Shares bought first are redeemed first, and Shares bought last are redeemed last.

Performance fee crystallized in case of redemption is payable at the end of the calculation period even if there is no longer performance fee at that date.

Any first calculation period shall start on the inception date and terminate at the last Valuation Day of the ongoing year-end. The subsequent calculation periods shall start on the first and terminate on the last Valuation Day of each following year.

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24. PICTET – ASIAN CORPORATE BONDS

Typical investor profile granted to the Managers and/or (iii) Bond Con- The Compartment is an actively managed investment ve- nect.Investments in China may be performed, hicle for investors: inter alia, on the China Interbank Bond Market (“CIBM”) directly or through the RQFII or the › Who wish to invest in debt securities issued by QFII quota granted to the Managers or through companies which are domiciled, headquartered Bond Connect. Investments in China may also or which conduct a majority of their business in be performed on any acceptable securities trad- Asian countries. ing programmes which may be available to the Compartment in the future as approved by the › Who are risk tolerant. relevant regulators from time to time. Investment policy and objectives  The Compartment may also invest up to 20% of The objective of this Compartment is to seek revenue and its net assets in asset-backed securities (ABS) capital growth by investing mainly in a diversified portfo- and in mortgage-backed securities (MBS) in lio of bonds and other debt securities issued or guaran- compliance with Article 2 of the Luxembourg teed by companies organised under private or public law regulations of 8 February 2008. (such as public establishments and/or companies that are  Investments in Rule 144A securities may not ex- majority held by the State or its local authorities) and ceed 20% of the Compartment’s net assets. which are domiciled, headquartered or which conduct the majority of their business in one or more Asian countries.  The Compartment may invest up to a maximum of 10% of its net assets in banking loans that Asian countries include, but are not limited to, the fol- are considered (with respect to Articles 2 or 3 lowing: Hong Kong, Singapore, the Philippines, Thai- and 4 of the Luxembourg regulations of 8 Febru- land, South Korea, Taiwan, Indonesia, India, China, Ma- ary 2008) as transferable securities or money cau, Malaysia and Bangladesh. market instruments listed or traded on regulated markets, within the limits stipulated by the in- The choice of investments will not be limited to a partic- vestment restrictions. ular sector of economic activity or currency. However, de-  The Compartment may be exposed to non-invest- pending on market conditions, the investments may be ment grade debt securities, including up to 10% focused on one or on a limited number of countries, eco- of its net assets, in distressed and defaulted nomic activity sectors and/or currencies. debt securities. The Managers intend to operate the Compartment in a way that high yield debt In addition, the Compartment may invest more than 50% securities should not exceed 60% of the Com- of its net assets in emerging countries. partment’s net assets. However, at times where The Compartment will however comply with the following the Managers consider it as appropriate, high limits: yield debt securities could represent, under exceptional circumstances, up to 80% of the Com-  The Compartment may invest up to 20% of its partment ’s assets assets in Sukuk al Ijarah, Sukuk al Wakalah,  The Compartment may also invest in closed- Sukuk al Mudaraba or any other type of Shariah- ended real estate investments trusts (REITs) up compliant fixed-income securities within the to 10% of its net assets. limits of the grand-ducal regulation dated 8 Feb- ruary 2008.  In addition, the Compartment may invest up to 10% of its net assets in UCITS and/or other  The Compartment may also invest up to 20% of UCIs including other Compartments of the Fund its net assets in contingent convertible bonds pursuant to Article 181 of the 2010 Act. (“CoCo Bonds”).  The Compartment will not invest more than 10%  The Compartment may invest up to 20% of its of its net assets in equities or equity-related se- net assets in bonds and other debt securities de- curities (such as ADR, GDR, EDR), derivative in- nominated in RMB through (i) the QFII quota struments (including warrants) and/or structured granted to the Managers (ii) the RQFII quota products (in particular convertible bonds) and/or

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UCIs whose underlying assets are, or offer expo- Exposure to total return swaps, Securities Lending Agree- sure to, equities or similar securities. ments, Reverse Repurchase Agreements and Repurchase The Compartment may invest in structured products, with Agreements or without embedded derivatives, such as, in particular, By way of derogation to the maximum exposure referred notes, certificates or any other transferable security to in the general part of the Prospectus, no more than whose returns are linked to, among others, an index (in- 20% of the Compartment’s net assets will be subject to cluding indices on volatility), currencies, interest rates, total return swaps. transferable securities, a basket of transferable securities, or an undertaking for collective investment, in ac- By way of derogation to the maximum exposure referred cordance with grand-ducal regulation dated 8 February to in the general part of the Prospectus, no more than 2008. 30% of the Compartment’s net assets will be subject to Reverse Repurchase Agreements. The Compartment may use derivative techniques and in- The Compartment does however not expect to be exposed struments for hedging and/or efficient portfolio manage- to total return swaps, Securities Lending Agreements, Re- ment within the limits specified in the investment repurchase Agreements and Reverse Repurchase Agree- strictions. ments. Financial derivative instruments may include options (including currency options), futures, forward exchange con- Risk factors The risks listed below are the most relevant risks of the tracts (including non-deliverable forwards), swaps (such Compartment. Investors should be aware that other risks as but not limited to Credit Default Swaps, Interest Rate may also be relevant to the Compartment. Please refer to Swaps, Credit Default Swap Index and Total Return the section "Risk Considerations" for a full description of Swaps). these risks. Under exceptional circumstances, if the manager con- Counterparty risk siders this to be in the best interest of the Shareholders, › the Compartment may hold up to 100% of its net assets › Collateral risk in liquidities as amongst others cash deposits, money › Settlement risk market funds (within the above-mentioned 10% limit) and money market instruments. › Credit risk

The Compartment may enter into Securities Lending › Credit rating risk Agreements and Repurchase and Reverse Repurchase › High Yield investment risk Agreements in order to increase its capital or its income › Asset liquidity risk or to reduce its costs or risks. › Investment restriction risk The investment process integrates ESG criteria based on proprietary and third-party research to evaluate invest- › Currency risk ment risks and opportunities. When selecting the Com- › Bond Connect Risk partment’s investments, securities of issuers with low › Interest rate risk ESG characteristics may be purchased and retained in the Compartment’s portfolio. › Emerging market risk

Reference index: › Political risk JP Morgan JACI Diversified Corporate (USD). Used for › Securities Lending Agreement Risk portfolio composition, risk monitoring, performance objective and performance measurement. › Repurchase and reverse repurchase agreement risk The Compartment is designed to offer performance that › Sukuk risk is likely to be significantly different from that of the benchmark. › Financial derivative instruments risk › Structured Finance Securities risk

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› Contingent Convertibles instruments risk Reference currency of the Compartment: USD › Distressed and defaulted debt securities risk Cut-off time for receipt of orders › Restricted securities risk Subscription › Volatility risk By 3:00 pm on the relevant Valuation Day.

› Risk of investing in the PRC Redemption By 3:00 pm on the relevant Valuation Day. › QFII risk › RQFII risk Switch The more restrictive time period of the two Compartments › CIBM risk concerned.

› Chinese currency exchange rate risk Frequency of net asset value calculation › ABS and MBS risk The net asset value will be determined as at each Banking Day (the “Valuation Day”). › Leverage risk However, the Board of Directors reserves the right not to The capital invested may fluctuate up or down, and in- calculate the net asset value or to calculate a net asset vestors may not recover the entire value of the capital in- value that cannot be used for trading purposes due to clo- itially invested. sure of one or more markets in which the Fund is invested Risk management method: and/or which it uses to value a material part of the assets. Relative value at risk (VaR). The VaR of the Compartment For further information, please refer to our website shall be compared with the VaR of the JP Morgan JACI www.assetmanagement.pictet. Diversified Corporate (USD) Calculation Day Expected leverage: The calculation and publication of the net asset value as 50%. at a Valuation Day will take place on the Week Day fol- Depending on market conditions, the leverage may be lowing the relevant Valuation Day (the “Calculation Day”). greater. Payment value date for subscriptions and redemptions Leverage calculation method: Within 3 Week Days following the applicable Valuation Sum of notional amounts. Day. Manager: Calculation of the net asset value PICTET AM Ltd The effect of net asset value corrections described in the Sub-Managers: section “Swing pricing mechanism /Spread” will not ex- PICTET AMS, PICTET AM HK ceed 3%.

PICTET – ASIAN CORPORATE BONDS

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25. PICTET – GLOBAL FIXED INCOME OPPORTUNITIES

Typical investor profile embedded derivatives, such as bonds whose returns may The Compartment is an actively managed investment ve- for example be linked to the performance of an index, hicle for investors: transferable securities or money market instruments, or a basket of securities, or an undertaking for collective in- › Who wish to be exposed to an internationally vestment, in accordance with grand-ducal regulation well-diversified portfolio that includes bonds, dated 8 February 2008. other fixed-income instruments (including money market instruments) and currencies. In compliance with the grand-ducal regulation dated 8 › Who are willing to bear variations in market value February 2008, the Compartment may also invest in and thus have a low aversion to risk. structured products without embedded derivatives, correlated with changes in commodities (including precious metals) and real estate, with cash settlement. Investment policy and objectives The objective of this Compartment is to achieve positive The underlyings of the structured products with embed- absolute returns by mainly offering an exposure to the fol- ded derivatives in which the Compartment will invest will lowing asset classes: be in line with the grand-ducal regulation dated 8 Febru- ary 2008 and the 2010 Act.  any form of debt securities (including but not limited to government or corporate bonds, convertible bonds, inflation-indexed bonds, ABS, The Compartment will however respect the following lim- MBS), its:  money market instruments, › The Compartment may invest up to 20% of its  currencies. net assets in each following instrument: The Compartment will thus mainly invest as follows:  directly in the securities/asset classes listed  bonds and other debt securities denominated above; and/or in RMB through the RQFII quota granted to the Managers or through Bond Connect. In-  in transferable securities (such as structured vestments in China may be performed, inter products, as described below) linked to perfor- alia, on the China Interbank Bond Market mance or offering exposure to the securities/as- (“CIBM”) directly or through the RQFII quota set classes mentioned in the preceding para- granted to the Managers or through Bond Con- graph; and/or nect. Investments in China may also be performed on any acceptable securities trading  via financial derivative instruments whose under- programmes which may be available to the liers are the securities/asset classes mentioned Compartment in the future as approved by the in the preceding paragraph or assets offering ex- relevant regulators from time to time. posure to these securities/asset classes. convertibles bonds. The Compartment may invest in any country (including  emerging countries), in any economic sector and in any  contingent convertible bonds. currency. However, depending on market conditions, the  Sukuk al Ijarah, Sukuk al Wakalah, Sukuk al investments may be focused on one country or on a lim- Mudaraba or any other type of Shariah-com- ited number of countries and/or one economic activity pliant fixed-income securities, in compliance sector and/or one currency. with the requirements of the grand-ducal regulation dated 8 February 2008. The Compartment may also invest in securities traded on the Moscow Stock Exchange.  Rule 144A securities.  asset-backed securities (bonds whose real as- The Compartment may invest, in accordance with its in- sets guarantee the investment) and in debt vestment strategy, in structured products with or without securitisations (such as but not exclusively

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ABS and MBS) in compliance with article 2 of The Compartment may conduct non-deliverable forward the grand-ducal regulation dated 8 February transactions. A Non-Deliverable Forward is a bilateral fi- 2008. nancial futures contract on an exchange rate between a › The Compartment may be exposed without limi- strong currency and an emerging currency. At maturity, tation to non-investment grade debt securities there will be no delivery of the emerging currency; instead (including in defaulted and distressed securi- there is a cash settlement of the contract’s financial re- ties for up to 10% of its net assets). Although sult in the strong currency. the Compartment is not subject to any limit regarding the rating of the non-investment grade The International Swaps and Derivatives Association debt securities concerned (except for the 10% (ISDA) has published standardised documentation for maximum invested in distressed and defaulted these transactions, included in the ISDA Master Agree- securities), the Managers intend to operate the ment. The Compartment may only conduct non-delivera- Compartment in a way that non-sovereign high ble forward transactions with leading financial institu- yield debt securities should not exceed 50% of the Compartment’s net assets. tions that specialise in this type of transaction, and with strict adherence to the standardised provisions of the The Compartment may also invest up to 10% of its net ISDA Master Agreement. assets in UCITS and other UCIs in compliance with the provisions of Article 41. (1) e) of the 2010 Act, including Under exceptional circumstances, if the manager con- other Compartments of the Fund pursuant to Article 181 siders this to be in the best interest of the Shareholders, of the 2010 Act. the Compartment may hold up to 100% of its net assets in liquidities as amongst others cash deposits, money To achieve its investment objective and through the use market funds (within the above-mentioned 10% limit) of financial derivative instruments, the Compartment can and money market instruments. hold a significant portion of liquid assets (such as deposits and money market instruments). The investment process integrates ESG criteria based on proprietary and third-party research to evaluate invest- The Compartment may use techniques and instruments ment risks and opportunities. When selecting the Com- on transferable securities and money market instruments partment’s investments, securities of issuers with low (such as Securities Lending Agreements and repurchase ESG characteristics may be purchased and retained in and reverse repurchase transactions) in order to increase the Compartment’s portfolio. its capital or its income, or to reduce costs or risks. Reference index: For hedging and/or efficient portfolio management, within ICE LIBOR USD 1M (USD). Used for performance meas- the limits set out in the chapter” Investment restrictions” urement. of the prospectus, the Compartment may use all types of financial derivative instruments traded on a regulated The portfolio composition is not constrained relative to market and/or over the counter (OTC) provided they are the benchmark, so the similarity of the Compartment’s contracted with leading financial institutions specialized performance to that of the benchmark may vary. in this type of transactions. In particular, the Compart- Exposure to total return swaps, Reverse Repurchase ment may take exposure through any financial derivative Agreements and Repurchase Agreements instruments such as but not limited to warrants, futures, By way of derogation to the maximum exposure referred options, swaps (including but not limited to total return to in the general part of the Prospectus, no more than swaps, contracts for difference and credit default swaps) 20% of the Compartment’s net assets will be subject to and forwards on any underlying in line with the 2010 Act total return swaps. as well as the investment policy of the Compartment, in- By way of derogation to the maximum exposure referred cluding but not limited to, currencies (including non-de- to in the general part of the Prospectus, no more than liverable forwards), interest rates, transferable securities, 30% of the Compartment’s net assets will be subject to basket of transferable securities, indices (including but Reverse Repurchase Agreements. not limited to commodities, precious metals or volatility indices), undertakings for collective investment. The Compartment does however not expect to be exposed

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to Securities Lending Agreements, Repurchase Agree- initially invested. ments and Reverse Repurchase Agreements. Risk management method: The expected level of exposure to total return swaps Absolute value-at-risk approach. amounts to 10% of the Compartment’s net assets. Expected leverage: Risk factors 600%. The risks listed below are the most relevant risks of the Depending on market conditions, the leverage may be Compartment. Investors should be aware that other risks greater. may also be relevant to the Compartment. Please refer Leverage calculation method: to the section "Risk Considerations" for a full description Sum of notional amounts. of these risks. Managers: › Counterparty risk PICTET AM S.A., PICTET AM Ltd

› Collateral risk Reference currency of the Compartment: › Credit risk USD › High Yield investment risk Cut-off time for receipt of orders Subscription › Distressed and defaulted debt securities risk By 12:00 noon on the relevant Valuation Day.

› Asset liquidity risk Redemption › Credit rating risk By 12:00 noon, on the relevant Valuation Day. › Currency risk Switch The more restrictive time period of the two Compart- › Interest rate risk ments concerned. › Emerging market risk Frequency of net asset value calculation › Political risk The net asset value will be determined as at each Bank- ing Day (the “Valuation Day”). › Securities Lending Agreement Risk However, the Board of Directors reserves the right not to › Repurchase and reverse repurchase agreement risk calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to › Financial derivative instruments risk closure of one or more markets in which the Fund is in- › Structured Finance Securities risk vested and/or which it uses to value a material part of the assets. › Contingent Convertibles instruments risk For further information, please refer to our website › Sukuk risk www.assetmanagement.pictet. › RQFII risk Calculation Day › CIBM risk The calculation and publication of the net asset value as › Bond Connect risk at a Valuation Day will take place on the Week Day following the relevant Valuation Day (the “Calculation › Chinese currency exchange rate risk Day”). › Investment restriction risk Payment value date for subscriptions and redemptions › ABS and MBS risk Within 3 Week Days following the applicable Valuation › Leverage risk Day. The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital

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PICTET – GLOBAL FIXED INCOME OPPORTUNITIES

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.10% 0.30% 0.20% A *** 1.10% 0.30% 0.20% P − 2.20% 0.30% 0.20% R − 3.00% 0.30% 0.20% Z − 0% 0.30% 0.20% J USD 50 million 1.10% 0.30% 0.20% IX USD 1 million 1.10% 0.30% 0.20% PX − 2.20% 0.30% 0.20% RX − 3.00% 0.30% 0.20% Z X − 0% 0.30% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

Performance fee: The Manager will receive a performance fee, accrued as at each Valuation Day, paid yearly, based on the net asset value (NAV), equivalent to 10 % of the performance of the NAV per Share, (measured against the High-Water Mark) over the performance of the index described in the below table for each Share Class, since the last performance fee payment. No performance fee will be payable for X Shares.

Type of Share Index

Share Classes denominated in USD and EUR LIBOR USD Overnight + 1.5%

Hedged Share Classes denominated in EUR EONIA + 1.5%

Hedged Share Classes denominated in CHF LIBOR CHF Spot Next + 1.5%

Hedged Share Classes denominated in JPY LIBOR JPY Spot Next + 1.5%

Hedged Share Classes denominated in GBP LIBOR GBP Overnight + 1.5%

The performance fee is calculated on the basis of the NAV after deduction of all expenses, liabilities, and management fees (but not performance fee), and is adjusted to take account of all subscriptions and redemptions.

The High-Water Mark is defined as the greater of the following two figures:

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For the Shares present into the Class of Shares at the beginning of the calculation period, performance fee will be calculated by reference to the performance against the High-Water Mark.

Performance fee crystallized in case of redemption is payable at the end of the calculation period even if there is no longer performance fee at that date.

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26. PICTET – ULTRA SHORT-TERM BONDS USD its net assets in UCITS and other UCIs, including other Typical investor profile Compartments of the Fund pursuant to Article 181 of The Compartment is not a money market fund in accord- the 2010 Act. ance with the regulation 2017/1131 on money market funds. These investments may be made in all markets while seeking capital growth in the reference currency. The Compartment is an actively managed investment vehicle for investors: The Compartment may invest in structured products without embedded derivatives, such as bonds or other › Who wish to invest in high quality short-term fixed-income securities. transferable securities whose returns are linked, for example, to the performance of an index in accordance › Who have some aversion to risk. with Article 9 of the Luxembourg regulations of 8 Febru- Investment policy and objectives ary 2008, transferable securities or a basket of transfer- The Compartment’s objective is to provide a return able securities, or an undertaking for collective invest- above that of money market instruments by investing in ment in accordance with the Luxembourg regulations of short maturity debt while aiming to avoid loss of capital. 8 February 2008 and the 2010 Act. This Compartment will mainly invest in The Compartment may enter into Securities Lending - a diversified portfolio of corporate and/or govern- Agreements and Repurchase and Reverse Repurchase ment bonds and other debt securities of any type Agreements in order to increase its capital or its income (including but not limited to Rule 144A bonds) or to reduce its costs or risks. and/or, money market instruments with debt securities having a maturity of no more than three For hedging and for efficient portfolio management, years; and within the limits set out in the chapter” Investment restrictions” of the Prospectus, the Compartment may use - cash and deposit. all types of financial derivative instruments. Investments will be denominated in USD or in other currencies as long as the debt securities and money market Under exceptional and temporarily circumstances, if the instruments are generally hedged in USD. managers consider this to be in the best interest of the Shareholders, the Compartment may hold up to 100% Investments will be made in debt securities (including of its net assets in liquidities as amongst other cash de- money market instruments) having an investment grade posits, money market funds (within the above-men- rating or when there is no official rating system, in debt tioned 10% limit) and money market instruments. securities considered by the Board of Directors as having identical quality criteria. If the credit rating of a se- The investment process integrates ESG criteria based on curity held by the Compartment deteriorates to non-in- proprietary and third-party research to evaluate invest- vestment grade, the security may be kept or sold, at the ment risks and opportunities. When selecting the Com- Manager’s discretion, in the best interests of the Share- partment’s investments, securities of issuers with low holders. ESG characteristics may be purchased and retained in the Compartment’s portfolio. If the credit ratings differ among several rating agencies, the highest rating will be taken into account. Reference index: US Effective Federal Funds Rate – Total Return (USD). Apart from exposure to USD, the Compartment may in- Used for performance measurement. vest in any other currency, any geographic region and any business sector. However, depending on market The portfolio composition is not constrained relative to conditions, the investments may be focused on one the benchmark, so the similarity of the Compartment’s country or on a limited number of countries and/or one performance to that of the benchmark may vary. economic activity sector. In addition, the Compartment may invest up to 10% of

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Exposure to total return swaps, Securities Lending Risk management method: Agreements, Reverse Repurchase Agreements and Re- Commitment approach purchase Agreements Managers: By way of derogation to the maximum exposure referred PICTET AM S.A., PICTET AM Ltd to in the general part of the Prospectus, no more than 100% of the Compartment’s net assets will be subject Reference currency of the Compartment: to Reverse Repurchase Agreements. USD

The expected level of exposure to Reverse Repurchase Cut-off time for receipt of orders Agreements amounts to 5% of the Compartment’s net Subscription By 3:00 pm on the relevant Valuation Day. assets.

The Compartment does however not expect to be ex- Redemption By 3:00 pm on the relevant Valuation Day. posed to total return swaps, Securities Lending Agree- ments, and Repurchase Agreements. Switch The more restrictive time period of the two Compart- Risk factors ments concerned. The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks Frequency of net asset value calculation may also be relevant to the Compartment. Please refer The net asset value will be determined as at each Bank- to the section "Risk Considerations" for a full description ing Day (the “Valuation Day”). of these risks. However, the Board of Directors reserves the right not to › Counterparty risk calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to › Collateral risk closure of one or more markets in which the Fund is in- › Credit risk vested and/or which it uses to value a material part of › Credit rating risk the assets. › Interest rate risk For further information, please refer to our website www.assetmanagement.pictet. › Securities Lending Agreement Risk Calculation Day › Repurchase and reverse repurchase agreement The calculation and publication of the net asset value as risk at a Valuation Day will take place on the Week Day fol- › Financial derivative instruments risk lowing the relevant Valuation Day (the “Calculation › Structured Finance Securities risk Day”). The capital invested may fluctuate up or down, and in- Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation vestors may not recover the entire value of the capital Day. initially invested.

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PICTET – ULTRA SHORT-TERM BONDS USD

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.30% 0.15% 0.05% A *** 0.30% 0.15% 0.05% P − 0.50% 0.15% 0.05% R − 0.75% 0.15% 0.05% Z − 0% 0.15% 0.05% J USD 100 million 0.20% 0.15% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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27. PICTET – ULTRA SHORT-TERM BONDS CHF

Typical investor profile its net assets in UCITS and other UCIs, including other The Compartment is not a money market fund in accord- Compartments of the Fund pursuant to Article 181 of ance with the regulation 2017/1131 on money market the 2010 Act. funds. These investments may be made in all markets while The Compartment is an actively managed investment ve- seeking capital growth in the reference currency. hicle for investors: The Compartment may invest in structured products › Who wish to invest in high quality short-term without embedded derivatives, such as bonds or other fixed-income securities. transferable securities whose returns are linked, for ex- › Who have some aversion to risk. ample, to the performance of an index in accordance with Article 9 of the Luxembourg regulations of 8 Febru- Investment policy and objectives ary 2008, transferable securities or a basket of transfer- The Compartment’s objective is to provide a return above that of money market instruments by investing in able securities, or an undertaking for collective invest- short maturity debt while aiming to avoid loss of capital. ment in accordance with the Luxembourg regulations of 8 February 2008 and the 2010 Act This Compartment will mainly invest in The Compartment may enter into Securities Lending - a diversified portfolio of corporate and/or govern- Agreements and Repurchase and Reverse Repurchase ment bonds and other debt securities of any type and /or, money market instruments with debt se- Agreements in order to increase its capital or its income curities having a maturity of no more than three or to reduce its costs or risks. years; and For hedging and for efficient portfolio management, - cash and deposit. within the limits set out in the chapter” Investment restrictions” of the Prospectus, the Compartment may use Investments will be denominated in CHF or in other cur- all types of financial derivative instruments. rencies as long as the debt securities and money market instruments are generally hedged in CHF. Under exceptional circumstances and temporarily, if the managers consider this to be in the best interest of the Investments will be made in debt securities (including Shareholders, the Compartment may hold up to 100% money market instruments) having an investment grade of its net assets in liquidities as amongst others cash rating or when there is no official rating system, in debt deposits, money market funds (within the above-men- securities considered by the Board of Directors as hav- tioned 10% limit) and money market instruments. ing identical quality criteria. If the credit rating of a security held by the Compartment deteriorates to non-in- The investment process integrates ESG criteria based on vestment grade, the security may be kept or sold, at the proprietary and third-party research to evaluate invest- Manager’s discretion, in the best interests of the Share- ment risks and opportunities. When selecting the Com- holders. partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in If the credit ratings differ among several rating agencies, the Compartment’s portfolio. the highest rating will be taken into account.

Apart from exposure to CHF, the Compartment may in- Exposure to total return swaps, Securities Lending Agreements, Reverse Repurchase Agreements and Re- vest in any other currency, any geographic region and purchase Agreements any business sector. However, depending on market By way of derogation to the maximum exposure referred conditions, the investments may be focused on one to in the general part of the Prospectus, no more than country or on a limited number of countries and/or one 100% of the Compartment’s net assets will be subject economic activity sector. to Reverse Repurchase Agreements. In addition, the Compartment may invest up to 10% of The expected level of exposure to Reverse Repurchase

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Agreements amounts to 5% of the Compartment’s net Redemption assets. By 3:00 pm on the relevant Valuation Day.

The Compartment does however not expect to be ex- Switch posed to total return swaps, Securities Lending Agree- The more restrictive time period of the two Compart- ments, and Repurchase Agreements. ments concerned.

› Interest rate risk Calculation Day The calculation and publication of the net asset value as › Securities Lending Agreement Risk at a Valuation Day will take place on the Week Day fol- › Repurchase and reverse repurchase agreement lowing the relevant Valuation Day (the “Calculation risk Day”). › Financial derivative instruments risk Payment value date for subscriptions and redemptions › Structured Finance Securities risk Within 2 Week Days following the applicable Valuation Day. The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital Initial subscription period initially invested. The initial subscription will take place from 23 October Risk management method: 2020 until 30 October 2020 until 3 pm, at an initial Commitment approach price equal to 100 CHF. The payment value date will be 3 November 2020. Managers: PICTET AM S.A., PICTET AM Ltd The Compartment may however be launched on any other Reference currency of the Compartment: date decided by the Board of Directors of the Fund. CHF

Cut-off time for receipt of orders Subscription By 3:00 pm on the relevant Valuation Day.

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PICTET – ULTRA SHORT-TERM BONDS CHF

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I CHF 1 million 0.30% 0.15% 0.05% A *** 0.30% 0.15% 0.05% P − 0.50% 0.15% 0.05% R − 0.75% 0.15% 0.05% Z − 0% 0.15% 0.05% CHF 100 mil- J 0.20% 0.15% 0.05% lion *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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28. PICTET – ULTRA SHORT-TERM BONDS EUR

Typical investor profile In addition, the Compartment may invest up to 10% of The Compartment is not a money market fund in accord- its net assets in UCITS and other UCIs, including other ance with the regulation 2017/1131 on money market Compartments of the Fund pursuant to Article 181 of funds. the 2010 Act.

The Compartment is an actively managed investment ve- These investments may be made in all markets while hicle for investors: seeking capital growth in the reference currency.

› Who wish to invest in high quality short-term The Compartment may invest in structured products fixed-income securities. without embedded derivatives, such as bonds or other › Who have some aversion to risk. transferable securities whose returns are linked, for example, to the performance of an index in accordance Investment policy and objectives with Article 9 of the Luxembourg regulations of 8 Febru- The Compartment’s objective is to provide a return above that of money market instruments by investing in ary 2008, transferable securities or a basket of transfer- short maturity debt while aiming to avoid a loss of capi- able securities, or an undertaking for collective invest- tal. ment in accordance with the Luxembourg regulations of 8 February 2008 and the 2010 Act. This Compartment will mainly invest in The Compartment may enter into Securities Lending - a diversified portfolio of corporate and/or government bonds and other debt securities of any type Agreements and Repurchase and Reverse Repurchase and /or, money market instruments with debt se- Agreements in order to increase its capital or its income curities having a maturity of no more than three or to reduce its costs or risks. years; and For hedging and for efficient portfolio management, - cash and deposit. within the limits set out in the chapter” Investment re- Investments will be denominated in EUR or in other cur- strictions” of the Prospectus, the Compartment may use rencies as long as the debt securities and money market all types of financial derivative instruments. instruments are generally hedged in EUR. Under exceptional and temporarily circumstances, if the Investments will be made in debt securities (including managers consider this to be in the best interest of the money market instruments) having an investment grade Shareholders, the Compartment may hold up to 100% rating or when there is no official rating system, in debt of its net assets in liquidities as amongst others cash securities considered by the Board of Directors as hav- deposits, money market funds (within the above-men- ing identical quality criteria. If the credit rating of a se- tioned 10% limit) and money market instruments. curity held by the Compartment deteriorates to non-in- The investment process integrates ESG criteria based on vestment grade, the security may be kept or sold, at the proprietary and third-party research to evaluate invest- Manager’s discretion, in the best interests of the Share- ment risks and opportunities. When selecting the Com- holders. partment’s investments, securities of issuers with low If the credit ratings differ among several rating agencies, ESG characteristics may be purchased and retained in the highest rating will be taken into account. the Compartment’s portfolio.

Apart from exposure to EUR, the Compartment may in- Reference index: vest in any other currency, any geographic region and EONIA Capitalization Index (EUR). Used for perfor- any business sector. However, depending on market mance measurement. conditions, the investments may be focused on one The portfolio composition is not constrained relative to country or on a limited number of countries and/or one the benchmark, so the similarity of the Compartment’s economic activity sector. performance to that of the benchmark may vary.

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Risk management method: Commitment approach Exposure to total return swaps, Securities Lending Managers: Agreements, Reverse Repurchase Agreements and Re- PICTET AM S.A., PICTET AM Ltd purchase Agreements By way of derogation to the maximum exposure referred Reference currency of the Compartment: to in the general part of the Prospectus, no more than EUR 100% of the Compartment’s net assets will be subject Cut-off time for receipt of orders to Reverse Repurchase Agreements. Subscription The expected level of exposure to Reverse Repurchase By 3:00 pm on the relevant Valuation Day. Agreements amounts to 5% of the Compartment’s net Redemption assets. By 3:00 pm on the relevant Valuation Day.

Risk factors Frequency of net asset value calculation The risks listed below are the most relevant risks of the The net asset value will be determined as at each Bank- Compartment. Investors should be aware that other risks ing Day (the “Valuation Day”). may also be relevant to the Compartment. Please refer However, the Board of Directors reserves the right not to to the section "Risk Considerations" for a full description calculate the net asset value or to calculate a net asset of these risks. value that cannot be used for trading purposes due to › Counterparty risk closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of › Collateral risk the assets. › Credit risk For further information, please refer to our website › Credit rating risk www.assetmanagement.pictet. Interest rate risk › Calculation Day › Securities Lending Agreement Risk The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day fol- › Repurchase and reverse repurchase agreement lowing the relevant Valuation Day (the “Calculation risk Day”). › Financial derivative instruments risk Payment value date for subscriptions and redemptions › Structured Finance Securities risk Within 2 Week Days following the applicable Valuation The capital invested may fluctuate up or down, and in- Day. vestors may not recover the entire value of the capital initially invested.

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PICTET – ULTRA SHORT-TERM BONDS EUR

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.30% 0.15% 0.05% A *** 0.30% 0.15% 0.05% P − 0.50% 0.15% 0.05% R − 0.75% 0.15% 0.05% Z − 0% 0.15% 0.05% J EUR 100 million 0.20% 0.15% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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29. PICTET – SUSTAINABLE EMERGING DEBT BLEND

Typical investor profile  The Compartment may invest up to 30% of its The Compartment is an actively managed investment ve- net assets in bonds and other debt securities de- hicle for investors: nominated in RMB through (i) the QFII quota granted to the Managers (ii) the RQFII quota › Who wish to invest in fixed-income securities granted to the Managers and/or (iii) Bond Con- from issuers located in emerging markets by nect. Investments in China may be performed, identifying the sector leaders practising sustain- inter alia, on the China Interbank Bond Market able development (“CIBM”) directly or through the RQFII or the QFII quota granted to the Managers or through › Who are risk tolerant. Bond Connect. Investments in China may also Investment policy and objectives be performed on any acceptable securities trad- The objective of the Compartment is to seek revenue ing programmes which may be available to the and capital growth by investing mainly in a diversified Compartment in the future as approved by the portfolio of bonds, money market instruments and other relevant regulators from time to time. debt securities from emerging countries. In addition to  Investments in unlisted securities and in Russia, seeking to achieve the Compartment’s economic and fi- other than on the Moscow Stock Exchange will nancial objectives, the investment process incorporates not exceed 10% of the Compartment’s net as- sustainability analysis encompassing environmental, so- sets cial and corporate governance (ESG) criteria, using ap-  Investments in Rule 144A securities may not expropriate information sources to define and evaluate the ceed 30% of the Compartment’s net assets. investment universe.  The Compartment may be exposed to non-invest- Emerging countries are defined as those considered, at ment grade debt securities, including up to 10% the time of investing, as industrially developing coun- of its net assets in distressed and defaulted debt tries by the International Monetary Fund, the World securities. The Managers intend to operate the Compartment in a way that non-investment Bank, the International Finance Corporation (IFC) or one grade debt securities should not exceed 70% of of the leading investment banks. These countries in- the Compartment’s net assets. If the credit rat- clude, but are not limited to, the following: Mexico, ing of a security held by the Compartment is Hong Kong, Singapore, Turkey, Poland, the Czech Re- downgraded, the security may be kept or sold, at public, Hungary, Israel, South Africa, Chile, Slovakia, the Manager’s discretion, in the best interests of Brazil, the Philippines, Argentina, Thailand, South Ko- the shareholders and respecting the 10% limit rea, Colombia, Taiwan, Indonesia, India, China, Roma- in distressed and defaulted debt securities men- nia, Ukraine, Malaysia, Croatia, and Russia. tioned above.  In addition, the Compartment may invest up to Investments are primarily denominated in the local cur- 10% of its net assets in UCITS and/or other rencies of the emerging countries and in US dollars. UCIs including other compartments of the Fund The Compartment will also comply with the following pursuant to Article 181 of the 2010 Act. limits: The Compartment may invest in structured products, with or without embedded derivatives, such as, in  The Compartment may invest up to 20% of its particular, notes, certificates or any other transfera- assets in Sukuk al Ijarah, Sukuk al Wakalah, ble security whose returns are linked to, among oth- Sukuk al Mudaraba or any other type of Shariah- ers, an index (including indices on volatility), curren- compliant fixed-income securities within the cies, interest rates, transferable securities, a basket limits of the grand-ducal regulation dated 8 Feb- of transferable securities, or an undertaking for col- ruary 2008. lective investment, in accordance with grand-ducal  The Compartment may also invest up to 5% of regulation dated 8 February 2008.The underlyings of its net assets in contingent convertible bonds the structured products with embedded derivatives (“CoCo Bonds”). in which the Compartment will invest will be in line

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with the grand-ducal regulation dated 8 February 30% of the Compartment’s net assets will be subject to 2008 and the 2010 Act. Reverse Repurchase Agreements.

The Compartment may use derivative techniques and in- The Compartment does however not expect to be ex- struments for hedging and/or efficient portfolio manage- posed to Securities Lending Agreements, Repurchase ment within the limits specified in the investment re- Agreements and Reverse Repurchase Agreements. strictions. The expected level of exposure to total return swaps Financial derivative instruments may include options amounts to 5% of the Compartment’s net assets. (including currency options), futures, forward exchange Risk profile contracts (including non-deliverable forwards), swaps The risks listed below are the most relevant risks of the (such as but not limited to Credit Default Swaps, Inter- Compartment. Investors should be aware that other risk est Rate Swaps, Credit Default Swap Index and funded may also be relevant to the Compartment. Please refer to or unfunded Total Return Swaps). the section "Risk Considerations" for a full description of these risks. Under exceptional circumstances, if the Managers consider this to be in the best interest of the shareholders, › Counterparty risk the Compartment may hold up to 100% of its net assets › Collateral risk in liquidities as amongst other cash deposits, money market funds (within the above-mentioned 10% limit) › Settlement risk and money market instruments. › Credit risk The Compartment may enter into Securities Lending › Credit rating risk Agreements and Repurchase and Reverse Repurchase › High Yield investment risk Agreements in order to increase its capital or its income or to reduce its costs or risks. › Asset liquidity risk

The investment process integrates ESG criteria based on › Investment restriction risk proprietary and third-party research to evaluate invest- › Currency risk ment risks and opportunities. The Compartment adopts › Bond Connect Risk a best in class approach which seeks to invest in securities of issuers with high ESG characteristics while avoid- › Interest rate risk ing those with low ESG characteristics › Emerging market risk Reference index: › Political risk JP Morgan ESG EMD Sovereign HC/LC Blended (USD). Used for portfolio composition, risk monitoring, perfor- › Securities Lending Agreement Risk mance objective and performance measurement. › Repurchase and reverse repurchase agreement

risk The Compartment is designed to offer performance that is likely to be significantly different from that of the › Sukuk risk benchmark. › Financial derivative instruments risk Exposure to total return swaps, Securities Lending › Structured Finance Securities risk Agreements, Reverse Repurchase Agreements and Re- purchase Agreements › Contingent Convertibles instruments risk By way of derogation to the maximum exposure referred › Distressed and defaulted debt securities risk to in the general part of this Prospectus, no more than 20% of the Compartment’s net assets will be subject to › Restricted securities risk total return swaps. › Volatility risk By way of derogation to the maximum exposure referred › Risk of investing in the PRC to in the general part of this Prospectus, no more than › QFII risk

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› RQFII risk Redemption By 3:00 pm on the relevant Valuation Day. › CIBM risk Switch › Chinese currency exchange rate risk The more restrictive time period of the two compart- › ABS and MBS risk ments concerned.

› Leverage risk Frequency of NAV calculation The capital invested may fluctuate up or down, and in- The NAV will be determined as at each Banking Day vestors may not recover the entire value of the capital (the “Valuation Day”). initially invested. However, the Board of Directors reserves the right not to calculate the NAV or to calculate a NAV that cannot be Risk management method: Relative value at risk (VaR). The VaR of the Compart- used for trading purposes due to closure of one or more ment shall be compared with the VaR of the JP Morgan markets in which the Fund is invested and/or which it ESG EMD Sovereign HC/LC Blended (USD) uses to value a material part of the assets.

Expected leverage: For further information, please refer to our website www.assetmanagement.pictet. 300%. Depending on market conditions, the leverage may be Calculation Day greater. The calculation and publication of the NAV as at a Valu- ation Day will take place on the Week Day following the Leverage calculation method: relevant Valuation Day (the “Calculation Day”). Sum of notional amounts. Payment value date for subscriptions and redemptions Managers: Within 2 Week Days following the applicable Valuation PICTET AM Ltd, PICTET AMS Day. Reference currency of the Compartment:

USD

Cut-off time for receipt of orders Subscription By 3:00 pm on the relevant Valuation Day.

PICTET – SUSTAINABLE EMERGING DEBT BLEND

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 1.05% 0.40% 0.20% A *** 1.05% 0.40% 0.20% P − 2.10% 0.40% 0.20% R − 3.00% 0.40% 0.20% Z − 0% 0.40% 0.20% E EUR 5 million 1.05% 0.40% 0.20% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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ANNEX 2: EQUITY COMPARTMENT S

This annex will be updated to account for any change in an existing Compartment or when a new Compartment is created.

30. PICTET – EUROPEAN EQUITY SELECTION By analogy, investments in undertakings for collective investment whose main objective is to invest in the as- Typical investor profile sets listed above are also included in the 10% limit. The Compartment is an actively managed investment vehicle for investors: The Compartment may also invest in structured products, such as bonds or other transferable securities › Who wish to invest in shares issued by compa- whose returns are linked to the performance of an index, nies with headquarters in Europe and/or whose transferable securities or a basket of transferable securi- main business is conducted in Europe. ties, or an undertaking for collective investment, for ex- › Who are willing to bear variations in market ample. value and thus have a low aversion to risk. The Compartment may enter into Securities Lending Investment policy and objectives Agreements and Repurchase and Reverse Repurchase This Compartment’s objective is to enable investors to Agreements in order to increase its capital or its income benefit from growth in the European equities market. or to reduce its costs or risks. This Compartment will also invest in securities traded The Compartment may use derivative techniques and in- on the Russian “RTS Stock Exchange”. struments for efficient management, within the limits The Compartment will invest a minimum of two-thirds of specified in the investment restrictions. its total assets/ total wealth in equities issued by compa- The investment process integrates ESG criteria based on nies that are headquartered in Europe or conduct the proprietary and third-party research to evaluate invest- majority of their business in Europe. ment risks and opportunities. When selecting the Com- The portfolio will be composed of a limited selection of partment’s investments, securities of issuers with low securities that, in the opinion of the manager, have the ESG characteristics may be purchased and retained in most favourable outlook. the Compartment’s portfolio.

This Compartment will hold a diversified portfolio, gen- Reference index: erally composed of securities issued by listed compa- MSCI Europe (EUR). Used for portfolio composition, risk nies. These securities may be ordinary or preference monitoring, performance objective and performance shares, convertible bonds and, to a lesser extent, war- measurement. rants on transferable securities and options. In addition, the Compartment may also invest up to 10% of its net The Compartment is designed to offer performance that is likely to be significantly different from that of the assets in UCITS and other UCIs, including other Com- benchmark. partments of the Fund pursuant to Article 181 of the 2010 Act. German Investment Tax Act restriction: The Compartment may also invest in depositary receipts At least 51% of the Compartment’s net assets shall be (such as ADR, GDR, EDR). invested in physical equities (to the exclusion of ADRs, GDRs, derivatives and of any lent securities) that are The Compartment will not invest more than 10% of its listed on a stock exchange. assets in bonds or any other debt security (including convertible bonds and preference shares), money market Exposure to total return swaps, Securities Lending instruments, derivatives and/or structured products Agreements, Reverse Repurchase Agreements and Re- whose underliers are, or offer exposure to, bonds or sim- purchase Agreements The expected level of exposure to Securities Lending ilar debt and interest-rate securities.

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Agreements amounts to 20% of the Compartment’s net Manager: assets. PICTET AM Ltd

The Compartment does not expect to be exposed to total Reference currency of the Compartment: return swaps, Repurchase Agreements and Reverse Re- EUR purchase Agreements. Cut-off time for receipt of orders Risk factors Subscription The risks listed below are the most relevant risks of the By 1:00 pm on the relevant Valuation Day. Compartment. Investors should be aware that other risks Redemption may also be relevant to the Compartment. Please refer By 1:00 pm on the relevant Valuation Day. to the section "Risk Considerations" for a full description Switch of these risks. The more restrictive time period of the two Compart- › Collateral risk ments concerned. › Equity risk Frequency of net asset value calculation The net asset value will be determined as at each Bank- › Volatility risk ing Day (the “Valuation Day”). › Securities Lending Agreement Risk However, the Board of Directors reserves the right not to › Repurchase and reverse repurchase agreement calculate the net asset value or to calculate a net asset risk value that cannot be used for trading purposes due to › Financial derivative instruments risk closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of › Structured Finance Securities risk the assets. The capital invested may fluctuate up or down, and in- For further information, please refer to our website vestors may not recover the entire value of the capital www.assetmanagement.pictet. initially invested. Calculation Day Risk management method: The calculation and publication of the net asset value as Commitment approach at a Valuation Day will take place on the relevant Valua- tion Day (the “Calculation Day”).

Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation Day.

PICTET – EUROPEAN EQUITY SELECTION

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.90% 0.40% 0.30% A *** 0.90% 0.40% 0.30% P − 1.80% 0.40% 0.30% R − 2.50% 0.40% 0.30% Z − 0% 0.40% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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31. PICTET – FAMILY Investments in unlisted securities will not exceed 10% Typical investor profile of the Compartment’s net assets The Compartment is an actively managed investment vehicle for investors: The Compartment may also invest in structured prod- › Who wish to invest in shares issued by family ucts, such as bonds or other transferable securities and founder companies across the globe. whose returns are linked to the performance of an index, › Who are willing to bear significant variations in transferable securities or a basket of transferable securi- market value and thus have a low aversion to ties, or an undertaking for collective investment, for ex- risk. ample.

Investment policy and objectives The Compartment may enter into Securities Lending This compartment aims to enable investors to benefit Agreements and Repurchase and Reverse Repurchase from the growth in companies globally (including in Agreements in order to increase its capital or its income emerging markets), by mainly investing in equities or to reduce its costs or risks. with a family or founder ownership. The Compartment may use derivative techniques and in- The Compartment may invest in any country (including struments for efficient management, within the limits emerging countries), in any economic sector and in any specified in the investment restrictions. currency. However, depending on market conditions, The investment process integrates ESG criteria based on the investments may be focused on one country or on proprietary and third-party research to evaluate invest- a limited number of countries and/or one economic ac- ment risks and opportunities. When selecting the Com- tivity sector and/or one currency. partment’s investments, securities of issuers with low The Compartment may invest up to 20% of its net as- ESG characteristics may be purchased and retained in sets in China A Shares in Shanghai-Hong Kong Stock the Compartment’s portfolio. Connect programme and/or the Shenzhen-Hong Kong Stock Connect programme and/or any similar acceptable Reference index: securities trading and clearing linked programmes or ac- MSCI ACWI (USD). Used for performance objective and cess instruments which may be available to the Com- performance measurement. partment in the future. The portfolio composition is not constrained relative to

the benchmark, so the similarity of the Compartment’s The Compartment may also invest in depositary receipts performance to that of the benchmark may vary. (such as ADR, GDR, EDR). German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall be In addition, the Compartment may also invest up to invested in physical equities (to the exclusion of ADRs, 10% of its net assets in UCITS and other UCIs, includ- GDRs, derivatives and of any lent securities) that are ing other Compartments of the Fund pursuant to Article listed on a stock exchange. 181 of the 2010 Act. Exposure to total return swaps, Securities Lending The Compartment will not invest more than 10% of its Agreements, Reverse Repurchase Agreements and Re- net assets in bonds or any other debt security (including purchase Agreements convertible bonds and preference shares), money market By way of derogation to the maximum exposure instruments, derivatives and/or structured products referred to in the general part of the Prospectus, no whose underliers are, or offer exposure to, bonds or sim- more than 20% of the Compartment’s net assets will be ilar debt and interest-rate securities. subject to total return swaps.

By analogy, investments in undertakings for collective The expected level of exposure to Securities Lending investment whose main objective is to invest in the as- Agreements amounts to 20% of the Compartment’s net sets listed above are also included in the 10% limit. assets.

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The Compartment does not expect to be exposed to total Managers: return swaps, Repurchase Agreements and Reverse Re- PICTET AM Ltd, PICTET AM S.A. purchase Agreements. Reference currency of the Compartment: Risk factors USD The risks listed below are the most relevant risks of the Cut-off time for receipt of orders Compartment. Investors should be aware that other risks Subscription may also be relevant to the Compartment. Please refer By 1:00 pm on the relevant Valuation Day. to the section "Risk Considerations" for a full description Redemption of these risks. By 1:00 pm on the relevant Valuation Day. › Collateral risk Switch › Equity risk The more restrictive time period of the two Compart- ments concerned. › Volatility risk › Securities Lending Agreement Risk Frequency of net asset value calculation The net asset value will be determined as at each › Currency risk Banking Day (the “Valuation Day”). › Emerging market risk However, the Board of Directors reserves the right not to › Political risk calculate the net asset value or to calculate a net asset › Tax risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › Risk of investing in Russia vested and/or which it uses to value a material part of › Stock Connect risk the assets.

› Chinese currency exchange rate risk For further information, please refer to our website › Risk of investing in the PRC www.assetmanagement.pictet. Calculation Day The calculation and publication of the net asset value as The capital invested may fluctuate up or down, and in- at a Valuation Day will take place on the relevant Valua- vestors may not recover the entire value of the capital tion Day (the “Calculation Day”). initially invested. Payment value date for subscriptions and redemptions Risk management method: Within 2 Week Days following the applicable Valuation Commitment approach Day. PICTET – FAMILY

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.20% 0.30% 0.10% A *** 1.20% 0.30% 0.10% P − 2.40% 0.30% 0.10% R − 2.90% 0.30% 0.10% Z − 0% 0.30% 0.10% USD 100 mil- 0.30% 0.10% J 1.10% lion *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes *** Please refer to www.assetmanagement.pictet

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32. PICTET – EMERGING MARKETS assets in UCITS and other UCIs, including other Com- Typical investor profile partments of the Fund pursuant to Article 181 of the The Compartment is an actively managed investment ve- 2010 Act. hicle for investors: The Compartment may also invest in depositary receipts › Who wish to invest in shares issued by compa- (such as ADR, GDR, EDR). nies with headquarters in and/or whose main business is conducted in emerging markets. The Compartment will not invest more than 10% of its assets in bonds or any other debt security, including › Who are willing to bear significant variations in convertible bonds, money market instruments, deriva- market value and thus have a low aversion to risk. tives and/or structured products whose underliers are, or offer exposure to, bonds or similar debt and interest-rate Investment policy and objectives securities. This Compartment invests at least two-thirds of its total assets/total wealth in securities issued by companies By analogy, investments in undertakings for collective that are headquartered in and/or have their main busi- investment whose main objective is to invest in the as- ness in emerging countries. sets listed above are also included in the 10% limit.

The Compartment may invest up to 30% of its net as- The Compartment may also invest in structured prod- sets in China A Shares through (i) the QFII quota ucts, such as bonds or other transferable securities granted to an entity of the Pictet Group, (ii) the RQFII whose returns are linked to the performance of an index, quota granted to an entity of the Pictet Group and/or (iii) transferable securities or a basket of transferable securi- the Shanghai-Hong Kong Stock Connect programme (iv) ties, or an undertaking for collective investment, for ex- the Shenzhen-Hong Kong Stock Connect programme ample. and/or (v) any similar acceptable securities trading and The Compartment may enter into Securities Lending clearing linked programmes or access instruments which Agreements and Repurchase and Reverse Repurchase may be available to the Compartment in the future. The Agreements in order to increase its capital or its income Compartment may also use financial derivative instru- or to reduce its costs or risks. ments on China A Shares. The Compartment may use derivative techniques and in- Emerging countries are defined as those considered, at struments for efficient management, within the limits the time of investing, as industrially developing coun- specified in the investment restrictions. tries by the International Monetary Fund, the World The investment process integrates ESG criteria based on Bank, the International Finance Corporation (IFC) or one proprietary and third-party research to evaluate invest- of the leading investment banks. These countries in- ment risks and opportunities. When selecting the Com- clude, but are not limited to, the following: Mexico, partment’s investments, securities of issuers with low Hong Kong, Singapore, Turkey, Poland, the Czech Re- ESG characteristics may be purchased and retained in public, Hungary, Israel, South Africa, Chile, Slovakia, Brazil, the Philippines, Argentina, Thailand, South Ko- the Compartment’s portfolio. rea, Colombia, Taiwan, Indonesia, India, China, Roma- Reference index: nia, Ukraine, Malaysia, Croatia, and Russia. MSCI EM (USD). Used for portfolio composition, risk monitoring, performance objective and performance This Compartment will also invest in securities traded measurement. on the Russian “RTS Stock Exchange”.

This Compartment will hold a diversified portfolio, gen- The Compartment is designed to offer performance that erally composed of securities issued by listed compa- is likely to be significantly different from that of the nies. These securities may be ordinary or preference benchmark. shares, convertible bonds and to a lesser extent warrants German Investment Tax Act restriction: on transferable securities and options. In addition, the At least 51% of the Compartment’s net assets shall be Compartment may also invest up to 10% of its net

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invested in physical equities (to the exclusion of ADRs, Risk management method: GDRs, derivatives and of any lent securities) that are Commitment approach listed on a stock exchange. Managers: Exposure to total return swaps, Securities Lending PICTET AM Ltd Agreements, Reverse Repurchase Agreements and Re- Reference currency of the Compartment: purchase Agreements USD The expected level of exposure to Securities Lending Agreements amounts to 10% of the Compartment’s net Investment through Pictet (Mauritius) Limited assets. The Management Company may decide that the portion of the Compartment’s assets to be invested in India The Compartment does not expect to be exposed to total should be invested indirectly through a company incor- return swaps, Repurchase Agreements and Reverse Re- porated in Mauritius named Pictet (Mauritius) Limited, purchase Agreements. which is wholly controlled by the Fund and conducts in- Risk factors vestment and advisory activities exclusively for the Com- The risks listed below are the most relevant risks of the partment (hereafter “PML”) and in particular the advi- Compartment. Investors should be aware that other risks sory activities concerning large-volume redemptions of may also be relevant to the Compartment. Please refer the Compartment’s Shares. Indirect investments are to the section "Risk Considerations" for a full description generally covered by the double taxation agreement of these risks. (DTA) in existence between India and Mauritius. › Collateral risk To this end, the Management Company will use the portion of the Compartment’s assets available for invest- › Asset liquidity risk ment in India to acquire all the PML shares, which will › Investment restriction risk thus be controlled entirely by the Fund. PML shares will › Currency risk be issued in registered form only. › Equity risk The exclusive purpose of PML is to perform investment and advisory activities on behalf of the Compartment. Volatility risk › The members of the PML board of directors are: › Emerging market risk Eric A Venpin › Political risk Jimmy Wong Yuen Tien › Tax risk Geneviève Lincourt John Sample › Risk of investing in Russia Olivier Ginguené › QFII risk The board of directors will at all times include at least two residents of Mauritius and a majority of directors › RQFII risk who are also directors of the Fund. › Stock Connect risk PML’s advisory activities for the Compartment include › Chinese currency exchange rate risk providing regular information regarding the applicability › Securities Lending Agreement Risk of the treaty between India and Mauritius as well as making investment recommendations for the Indian › Repurchase and reverse repurchase agreement market. PML also advises in cases of redemptions of the risk Compartment’s Shares greater than 20% of the net › Financial derivative instruments risk value in order to enable the manager to divest as neces- › Structured Finance Securities risk sary when faced with large volumes of redemption requests. The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital The financial statements of PML will be audited by initially invested. Deloitte S.A., which is the statutory auditor for the

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Fund, or by any other statutory auditor established in b. In accordance with Indian legislation governing Mauritius that is an associate of the Fund’s statutory au- foreign investments, the Compartment’s assets ditor. For the establishment of the Compartment’s finan- must be held by the Indian correspondent on behalf of Pictet Asset Management Ltd, a PML cial statements and semi-annual and annual reports, sub-account. PML’s financial results will be consolidated in the financial results of the Compartment. Similarly, these reports c. By investing through PML, the Fund intends to will contain a breakdown of the Compartment’s portfolio take advantage of the DTA between Mauritius and India, as described more fully above. It can- in terms of the underlying securities held by PML. In ac- not be guaranteed that the Fund will always cordance with the investment restrictions contained in have these tax advantages. Furthermore, amend- the Prospectus, the underlying investments will be taken ments could also be made to the DTA, and into consideration as if PML did not exist. these could affect the taxation of the Fund’s in- PML was initially incorporated on 3 May 1996 as an off- vestments and/or the taxation of PML and, consequently, the value of Shares in the Fund. shore limited company under the Mauritius Offshore Business Activities Act 1992. PML holds a Category 1 Currently, the Compartment is making any new invest- Global Business Licence in compliance with the 2007 ment directly in India rather than through PML, and all the investments held by PML have already been sold. Financial Services Act.

PML has been granted a tax residence certificate from The Board of Directors took the decision to liquidate the Commissioner of Income Tax in Mauritius. PML. Liquidation costs associated with liquidating PML will be borne by the Compartment. Accordingly, PML is considered to be resident in Mauri- tius for tax purposes and may thus benefit from the In addition, there is the possibility that a retrospective DTA. However, there is no guarantee that PML will be tax assessment could be levied on PML after liquidation for which the Compartment would be liable. This liabil- able to maintain its tax resident status, and the termina- ity will have to be borne out of the assets of the Com- tion of this status could result in the loss of tax benefits, partment which may have a negative impact on the thereby affecting the Compartment’s net asset value per Compartment's net asset value. Share. Cut-off time for receipt of orders PML operates as an investment holding company. The Subscription Mauritian supervisory commission (the Mauritius Finan- By 1:00 pm on the relevant Valuation Day. cial Services Commission) does not stand surety for the solvency of PML or for the accuracy of any statement or Redemption opinion issued in its regard. By 1:00 pm on the relevant Valuation Day.

Correspondent of the Depositary Bank in India Switch The Depositary Bank has appointed Deutsche Bank AG, The more restrictive time period of the two Compart- Mumbai Branch, as local custodian of the securities and ments concerned. other assets of the Compartment in India. Frequency of net asset value calculation The net asset value will be determined as at each Bank- For the portion of assets to be invested in India, inves- ing Day (the “Valuation Day”). tors should note the following: However, the Board of Directors reserves the right not to a. Pictet Asset Management Ltd has been granted Foreign Institutional Investor (“FII”) status by calculate the net asset value or to calculate a net asset the Securities and Exchange Board of India value that cannot be used for trading purposes due to (“SEBI”) and is therefore authorised to invest in closure of one or more markets in which the Fund is in- Indian securities on behalf of the Fund. The vested and/or which it uses to value a material part of Fund’s investments in India are largely depend- the assets. ent on the FII status granted to the manager, and, while it may be assumed that this authori- For further information, please refer to our website sation will be renewed, this cannot be guaran- www.assetmanagement.pictet. teed.

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Calculation Day concerned (the “Calculation Day”). The calculation and publication of the net asset value as Payment value date for subscriptions and redemptions at a Valuation Day will take place on the Valuation Day Within 4 Week Days following the applicable Valuation Day.

PICTET –EMERGING MARKETS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 2.00% 0.40% 0.30% A *** 2.00% 0.40% 0.30% P − 2.50% 0.40% 0.30% R − 2.90% 0.40% 0.30% Z − 0% 0.40% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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33. PICTET – EMERGING EUROPE transferable securities or a basket of transferable securi- Typical investor profile ties, or an undertaking for collective investment, for ex- The Compartment is an actively managed investment ve- ample. hicle for investors: The Compartment may enter into Securities Lending › Who wish to invest in shares issued by compa- Agreements and Repurchase and Reverse Repurchase nies with headquarters in and/or whose main Agreements in order to increase its capital or its income business is conducted in emerging Europe, in- or to reduce its costs or risks. cluding Russia and Turkey. The Compartment may use derivative techniques and in- › Who are willing to bear significant variations in market value and thus have a low aversion to struments for efficient management, within the limits risk. specified in the investment restrictions.

Investment policy and objectives The investment process integrates ESG criteria based on This Compartment invests at least two-thirds of its total proprietary and third-party research to evaluate invest- assets/ total wealth in transferable securities issued by ment risks and opportunities. When selecting the Com- companies with headquarters in and/or whose main partment’s investments, securities of issuers with low business is conducted in European emerging countries. ESG characteristics may be purchased and retained in the Compartment’s portfolio. This Compartment will also invest in securities traded on the Russian “RTS Stock Exchange”. Reference index: MSCI EM Europe 10/40 (EUR). Used for risk monitor- This Compartment will hold a diversified portfolio, gen- ing, performance objective and performance measure- erally composed of securities issued by listed compa- ment. nies. These securities may be ordinary or preference shares, convertible bonds and to a lesser extent warrants The Compartment is designed to offer performance that on transferable securities and options. In addition, the is likely to be significantly different from that of the Compartment may also invest up to 10% of its net as- benchmark. sets in UCITS and other UCIs, including other Compart- ments of the Fund pursuant to Article 181 of the 2010 German Investment Tax Act restriction: Act. At least 51% of the Compartment’s net assets shall be invested in physical equities (to the exclusion of ADRs, The Compartment may also invest in depositary receipts GDRs, derivatives and of any lent securities) that are (such as ADR, GDR, EDR). listed on a stock exchange. The Compartment may also invest in emerging countries Exposure to total return swaps, Securities Lending other than European emerging countries. Agreements, Reverse Repurchase Agreements and Re- The Compartment will not invest more than 10% of its purchase Agreements assets in bonds or any other debt security, including The expected level of exposure to Securities Lending convertible bonds, money market instruments, deriva- Agreements amounts to 10% of the Compartment’s net tives and/or structured products whose underliers are, or assets. offer exposure to, bonds or similar debt and interest-rate The Compartment does not expect to be exposed to total securities. return swap, Repurchase Agreements and Reverse Re- By analogy, investments in undertakings for collective purchase Agreements. investment whose main objective is to invest in the as- Risk factors sets listed above are also included in the 10% limit. The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks The Compartment may also invest in structured prod- may also be relevant to the Compartment. Please refer ucts, such as bonds or other transferable securities to the section "Risk Considerations" for a full description whose returns are linked to the performance of an index, of these risks.

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› Collateral risk Reference currency of the Compartment: EUR › Settlement risk Cut-off time for receipt of orders › Asset liquidity risk Subscription › Investment restriction risk By 1:00 pm on the relevant Valuation Day.

› Currency risk Redemption By 1:00 pm on the relevant Valuation Day. › Equity risk › Volatility risk Switch The more restrictive time period of the two Compart- › Emerging market risk ments concerned.

› Political risk Frequency of net asset value calculation › Risk of investing in Russia The net asset value will be determined as at each Bank- ing Day (the “Valuation Day”). › Securities Lending Agreement Risk However, the Board of Directors reserves the right not to › Repurchase and reverse repurchase agreement calculate the net asset value or to calculate a net asset risk value that cannot be used for trading purposes due to › Financial derivative instruments risk closure of one or more markets in which the Fund is in- › Structured Finance Securities risk vested and/or which it uses to value a material part of the assets. › Depositary receipts risk For further information, please refer to our website The capital invested may fluctuate up or down, and in- www.assetmanagement.pictet. vestors may not recover the entire value of the capital initially invested. Calculation Day The calculation and publication of the net asset value as Risk management method: at a Valuation Day will take place on the relevant Valua- Commitment approach tion Day (the “Calculation Day”). Manager: Payment value date for subscriptions and redemptions PICTET AM Ltd Within 3 Week Days following the applicable Valuation Day.

PICTET – EMERGING EUROPE

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.80% 0.80% 0.30% A *** 1.80% 0.80% 0.30% P − 2.40% 0.80% 0.30% R − 2.90% 0.80% 0.30% Z − 0% 0.80% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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34. PICTET – EUROPE INDEX

The a priori tracking error between the change in the The Compartment may, in application of Article 44 of the 2010 Act, invest up to 20% (and even 35% (for a value of the underliers of the Compartment and those of single issuer) in exceptional market circumstances, par- the Benchmark Index is expected to be below 0.20% ticularly in the case of regulated markets where certain p.a. in normal market conditions. transferable securities are largely dominant) of its net Due to this physical replication, it may be difficult or assets in the same issuer in order to replicate the com- even impossible to purchase all the components of the position of its Benchmark Index. Benchmark Index in proportion to their weighting in the The Compartment will hold a diversified portfolio and Benchmark Index or to purchase certain components could contain convertible bonds. due to their liquidity, the investment limits described in the section “Investment Restrictions”, other legal or reg- The Compartment will not invest in UCITS and other ulatory limits, transaction and other fees incurred by the UCIs. Compartment, existing differences and the potential If the manager deems it necessary and in the best inter- mismatch between the Compartment and the Bench- est of the Shareholders, and to ensure adequate liquid- mark Index when the markets are closed. ity, the Compartment may hold liquid instruments such The Compartment may marginally invest in securities as deposits and money market instruments, among oth- that are not part of the benchmark whenever necessary ers. (e.g. when the index is rebalanced, in case of corporate If the manager deems it necessary and in the best inter- action or to manage cashflows), or in exceptional cir- est of the Shareholders, and to minimise the risk of un- cumstances such as market disruptions or extreme vola- derperforming the Benchmark, the Compartment may tility. As a consequence, there might be substantial dif- use financial derivative instruments and techniques for ferences between the composition of the Compartment’s efficient management, within the limits specified in the portfolio and that of the Benchmark Index. investment restrictions. Because the Compartment aims to physically replicate The Compartment may enter into Securities Lending

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Agreements and Repurchase and Reverse Repurchase Managers: Agreements in order to increase its capital or its income PICTET AM Ltd, PICTET AM S.A. or to reduce its costs or risks. Reference currency of the Compartment: German Investment Tax Act restriction: EUR At least 51% of the Compartment’s net assets shall be Cut-off time for receipt of orders invested in physical equities (to the exclusion of ADRs, Subscription GDRs, derivatives and of any lent securities) that are By 12:00 noon on the relevant Valuation Day. listed on a stock exchange. Redemption Exposure to total return swaps, Securities Lending By 12:00 noon on the relevant Valuation Day. Agreements, Reverse Repurchase Agreements and Re- Switch purchase Agreements The more restrictive time period of the two Compart- The expected level of exposure to Securities Lending ments concerned. Agreements amounts to 10% of the Compartment’s net assets. Frequency of net asset value calculation The net asset value will be determined as at each Bank- The Compartment does not expect to be exposed to total ing Day (the “Valuation Day”). return swaps, Repurchase Agreements and Reverse Re- purchase Agreements. However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset Risk factors value that cannot be used for trading purposes due to The risks listed below are the most relevant risks of the closure of one or more markets in which the Fund is in- Compartment. Investors should be aware that other risks vested and/or which it uses to value a material part of may also be relevant to the Compartment. Please refer the assets. to the section "Risk Considerations" for a full description of these risks. For further information, please refer to our website www.assetmanagement.pictet. › Collateral risk Calculation Day › Currency risk The calculation and publication of the net asset value as › Equity risk at a Valuation Day will take place on the Week Day fol- › Volatility risk lowing the relevant Valuation Day (the “Calculation Day”). › Securities Lending Agreement Risk Payment value date for subscriptions and redemptions Repurchase and reverse repurchase agreement › Within 2 Week Days following the applicable Valuation risk Day. › Financial derivative instruments risk Calculation of the net asset value The capital invested may fluctuate up or down, and in- The effect of net asset value corrections described in vestors may not recover the entire value of the capital the section “Swing pricing mechanism /Spread” will not initially invested. exceed 1%.

Risk management method: Commitment approach

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PICTET – EUROPE INDEX

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.30% 0.10% 0.30% IS EUR 1 million 0.30% 0.10% 0.30% A *** 0.30% 0.10% 0.30% P − 0.45% 0.10% 0.30% R − 0.90% 0.10% 0.30% Z − 0% 0.10% 0.30% J EUR 100 million 0.10% 0.10% 0.30% JS EUR 100 million 0.10% 0.10% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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35. PICTET – USA INDEX

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Agreements and Repurchase and Reverse Repurchase Managers: Agreements in order to increase its capital or its income PICTET AM Ltd, PICTET AM S.A. or to reduce its costs or risks. Reference currency of the Compartment: German Investment Tax Act restriction: USD At least 51% of the Compartment’s net assets shall be Cut-off time for receipt of orders invested in physical equities (to the exclusion of ADRs, Subscription GDRs, derivatives and of any lent securities) that are By 12:00 noon on the relevant Valuation Day. listed on a stock exchange. Redemption Exposure to total return swaps, Securities Lending By 12:00 noon on the relevant Valuation Day. Agreements, Reverse Repurchase Agreements and Re- Switch purchase Agreements The more restrictive time period of the two Compart- The expected level of exposure to Securities Lending ments concerned. Agreements amounts to 5% of the Compartment’s net assets. Frequency of net asset value calculation The net asset value will be determined as at each Bank- The Compartment does not expect to be exposed to total ing Day (the “Valuation Day”). return swaps, Repurchase Agreements and Reverse Re- purchase Agreements. However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset Risk factors value that cannot be used for trading purposes due to The risks listed below are the most relevant risks of the closure of one or more markets in which the Fund is in- Compartment. Investors should be aware that other risks vested and/or which it uses to value a material part of may also be relevant to the Compartment. Please refer the assets. to the section "Risk Considerations" for a full description of these risks. For further information, please refer to our website www.assetmanagement.pictet. › Collateral risk Calculation Day › Equity risk The calculation and publication of the net asset value as › Volatility risk at a Valuation Day will take place on the Week Day fol- › Securities Lending Agreement Risk lowing the relevant Valuation Day (the “Calculation Day”). › Repurchase and reverse repurchase agreement risk Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation › Financial derivative instruments risk Day. The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital Calculation of the net asset value initially invested. The effect of net asset value corrections, more fully described in the section “Swing pricing mechanism Risk management method: Commitment approach /Spread”, will not exceed 1%.

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PICTET – USA INDEX

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.30% 0.10% 0.30% IS USD 1 million 0.30% 0.10% 0.30% A *** 0.30% 0.10% 0.30% P − 0.45% 0.10% 0.30% R − 0.90% 0.10% 0.30% Z − 0% 0.10% 0.30% J USD 100 million 0.10% 0.10% 0.30% JS USD 100 million 0.10% 0.10% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. Subscription and redemption may also be made in EUR for P USD, P dy USD and R USD Share Classes and the conversion costs will be charged to the Compartment. *** Please refer to www.assetmanagement.pictet

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36. PICTET – QUEST EUROPE SUSTAINABLE EQUITIES

Typical investor profile Agreements in order to increase its capital or its income The Compartment is an actively managed investment ve- or to reduce its costs or risks. hicle for investors: The Compartment may use derivative techniques and in- › Who wish to invest in shares issued by compa- struments for efficient management, within the limits nies that are part of the MSCI Europe Index by specified in the investment restrictions. identifying the sector leaders practising sustainable development. The investment process integrates ESG criteria based on proprietary and third-party research to evaluate invest- › Who are willing to bear variations in market ment risks and opportunities. The Compartment adopts value and thus have a low aversion to risk. a best in class approach which seeks to invest in securi- Investment policy and objectives ties of issuers with high ESG characteristics while avoid- This Compartment will invest at least two-thirds of its ing those with low ESG characteristics total assets/total wealth in equities issued by companies Reference index: that are headquartered in and/or conduct their main MSCI Europe (EUR). Used for portfolio composition, risk business in Europe and will aim to benefit from the su- monitoring, performance objective and performance perior potential of companies practising sustainable de- measurement. velopment principles in their activities. The manager uses appropriate information sources on The Compartment is designed to offer performance that environmental, social and corporate governance aspects is likely to be significantly different from that of the benchmark. to evaluate companies and define the investment universe. The portfolio is constructed using a quantitative German Investment Tax Act restriction: method that adapts the portfolio according to financial At least 51% of the Compartment’s net assets shall be stability, and the objective is to build a portfolio with su- invested in physical equities (to the exclusion of ADRs, perior financial and sustainable characteristics. GDRs, derivatives and of any lent securities) that are This Compartment will hold a diversified portfolio, gen- listed on a stock exchange. erally composed of securities issued by listed compa- Exposure to total return swaps, Securities Lending nies. These securities may be ordinary or preference Agreements, Reverse Repurchase Agreements and Re- shares, convertible bonds and to a lesser extent warrants purchase Agreements on transferable securities and options. In addition, the The Compartment does not expect to be exposed to total Compartment may also invest up to 10% of its net as- return swaps, Securities Lending Agreements, Repur- sets in UCITS and other UCIs, including other Compart- chase Agreements and Reverse Repurchase Agreements. ments of the Fund pursuant to Article 181 of the 2010 Risk factors Act. The risks listed below are the most relevant risks of the The Compartment may also invest in depositary receipts Compartment. Investors should be aware that other risks (such as ADR, GDR, EDR). may also be relevant to the Compartment. Please refer to the section "Risk Considerations" for a full description The Compartment may also invest in structured prod- of these risks. ucts, such as bonds or other transferable securities whose returns are linked to the performance of an index, › Collateral risk transferable securities or a basket of transferable securi- › Equity risk ties, or an undertaking for collective investment, for example. › Volatility risk

The Compartment may enter into Securities Lending › Securities Lending Agreement Risk Agreements and Repurchase and Reverse Repurchase

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› Repurchase and reverse repurchase agreement Compartments concerned. risk Frequency of net asset value calculation › Financial derivative instruments risk The net asset value will be determined as at each Bank- › Structured Finance Securities risk ing Day (the “Valuation Day”). The capital invested may fluctuate up or down, and in- However, the Board of Directors reserves the right not to vestors may not recover the entire value of the capital calculate the net asset value or to calculate a net asset initially invested. value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- Risk management method: vested and/or which it uses to value a material part of Commitment approach the assets.

Managers: For further information, please refer to our website PICTET AM Ltd, PICTET AM S.A. www.assetmanagement.pictet. Reference currency of the Compartment: Calculation Day EUR The calculation and publication of the net asset value as Cut-off time for receipt of orders at a Valuation Day will take place on the relevant Valua- Subscription tion Day (the “Calculation Day”). By 1:00 pm on the relevant Valuation Day. Payment value date for subscriptions and redemptions Redemption Within 2 Week Days following the applicable Valuation By 1:00 pm on the relevant Valuation Day. Day.

Switch The more restrictive time period of the two

PICTET – QUEST EUROPE SUSTAINABLE EQUITIES

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.65% 0.45% 0.30% A *** 0.65% 0.45% 0.30% P − 1.20% 0.45% 0.30% R − 1.80% 0.45% 0.30% Z − 0% 0.45% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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37. PICTET – JAPAN INDEX

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Exposure to total return swaps, Securities Lending Redemption Agreements, Reverse Repurchase Agreements and Re- By 12:00 noon on the Banking Day preceding the rele- purchase Agreements vant Valuation Day. The expected level of exposure to Securities Lending Agreements amounts to 25% of the Compartment’s net Switch The more restrictive time period of the two Compart- assets. ments concerned. The Compartment does not expect to be exposed to total return swaps, Repurchase Agreements and Reverse Re- Frequency of net asset value calculation The net asset value will be determined as at each Bank- purchase Agreements. ing Day (the “Valuation Day”). Risk factors However, the Board of Directors reserves the right not to The risks listed below are the most relevant risks of the calculate the net asset value or to calculate a net asset Compartment. Investors should be aware that other risks value that cannot be used for trading purposes due to may also be relevant to the Compartment. Please refer closure of one or more markets in which the Fund is in- to the section "Risk Considerations" for a full description vested and/or which it uses to value a material part of of these risks. the assets.

› Collateral risk For further information, please refer to our website › Equity risk www.assetmanagement.pictet. › Volatility risk Calculation Day The calculation and publication of the net asset value as › Securities Lending Agreement Risk at a Valuation Day will take place on the Valuation Day › Repurchase and reverse repurchase agreement concerned (the “Calculation Day”). risk Payment value date for subscriptions and redemptions › Financial derivative instruments risk Within 2 Week Days following the applicable Valuation Day. The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital Calculation of the net asset value initially invested. The effect of net asset value corrections, more fully described in the section “Swing pricing mechanism Risk management method: /Spread”, will not exceed 1%. Commitment approach

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PICTET – JAPAN INDEX

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I JPY 100 million 0.30% 0.10% 0.30% IS JPY 100 million 0.30% 0.10% 0.30% A *** 0.30% 0.10% 0.30% P − 0.45% 0.10% 0.30% R − 0.90% 0.10% 0.30% Z − 0% 0.10% 0.30% J JPY 10 billion 0.10% 0.10% 0.30% JS JPY 10 billion 0.10% 0.10% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. Subscription and redemption may also be made in EUR for P JPY, P dy JPY and R JPY Share Classes and the conversion costs will be charged to the Compartment. *** Please refer to www.assetmanagement.pictet

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38. PICTET – PACIFIC EX JAPAN INDEX

Typical investor profile the Benchmark Index, the composition of the portfolio The Compartment is a passively managed investment ve- will not be adjusted, except (if applicable) in an effort to hicle for investors: better reproduce the performance of the Benchmark In- dex. Consequently, the Compartment will not aim to › Who wish to replicate the performance of the MSCI Pacific Excluding Japan Index. “outperform” the Benchmark Index and will not try to adopt a defensive positioning when markets are declin- Who are willing to bear variations in market › ing or considered overvalued. A decline in the Bench- value and thus have a low aversion to risk. mark Index could thus lead to a corresponding decline Investment policy and objectives in the value of the Compartment’s Shares. The Compartment aims for the full and complete physi- Investors should also be aware that rebalancing the cal replication of the MSCI Pacific Excluding Japan In- dex (hereinafter the “Benchmark Index”). It aims to Benchmark Index may incur transaction fees that will be borne by the Compartment and may affect the Compart- achieve its investment objective by investing in a portfo- ment’s net asset value. lio of transferable securities or other eligible assets comprising all (or, on an exceptional basis, a substantial In addition to the specific risks linked to the physical number) of the components of the index concerned. replication of the Benchmark Index, investors should be aware that the Compartment is more generally subject to The composition of the Benchmark Index may be ob- market risks (i.e. the risk of the decrease in the value of tained at the address: http://www.msci.com. As a rule, an investment due to changes in market factors such as the Benchmark Index shall be rebalanced four times a exchange rates, interest rates, share prices or volatility). year The Compartment may, in application of Article 44 of The a priori tracking error between the change in the the 2010 Act, invest up to 20% (and even 35% (for a value of the underliers of the Compartment and those of single issuer) in exceptional market circumstances, par- the Benchmark Index is expected to be below 0.30% ticularly in the case of regulated markets where certain p.a. in normal market conditions. transferable securities are largely dominant) of its net Due to this physical replication, it may be difficult or assets per issuer in order to replicate the composition of even impossible to purchase all the components of the its Benchmark Index. Benchmark Index in proportion to their weighting in the The Compartment will hold a diversified portfolio and Benchmark Index or to purchase certain components could contain convertible bonds. due to their liquidity, the investment limits described in the section “Investment Restrictions”, other legal or reg- The Compartment will not invest in UCITS and other ulatory limits, transaction and other fees incurred by the UCIs. Compartment, existing differences and the potential If the manager deems it necessary and in the best inter- mismatch between the Compartment and the Bench- est of the Shareholders, and to ensure adequate liquid- mark Index when the markets are closed. ity, the Compartment may hold liquid instruments such The Compartment may marginally invest in securities as deposits and money market instruments, among oth- that are not part of the benchmark whenever necessary ers. (e.g. when the index is rebalanced, in case of corporate If the manager deems it necessary and in the best inter- action or to manage cashflows), or in exceptional cir- est of the Shareholders, and to minimise the risk of un- cumstances such as market disruptions or extreme vola- derperforming the Benchmark, the Compartment may tility. As a consequence, there might be substantial dif- use financial derivative instruments and techniques for ferences between the composition of the Compartment’s efficient management, within the limits specified in the portfolio and that of the Benchmark Index. investment restrictions. Because the Compartment aims to physically replicate The Compartment may enter into Securities Lending

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Exposure to total return swaps, Securities Lending Redemption Agreements, Reverse Repurchase Agreements and Re- By 12:00 noon on the Banking Day preceding the rele- purchase Agreements vant Valuation Day. The expected level of exposure to Securities Lending Agreements amounts to 5% of the Compartment’s net Switch The more restrictive time period of the two Compart- assets. ments concerned. The Compartment does not expect to be exposed to total return swaps, Repurchase Agreements and Reverse Re- Frequency of net asset value calculation The net asset value will be determined as at each Bank- purchase Agreements ing Day (the “Valuation Day”). Risk factors However, the Board of Directors reserves the right not to The risks listed below are the most relevant risks of the calculate the net asset value or to calculate a net asset Compartment. Investors should be aware that other risks value that cannot be used for trading purposes due to may also be relevant to the Compartment. Please refer closure of one or more markets in which the Fund is in- to the section "Risk Considerations" for a full description vested and/or which it uses to value a material part of of these risks. the assets. › Collateral risk For further information, please refer to our website › Currency risk www.assetmanagement.pictet.

› Equity risk Calculation Day › Volatility risk The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day fol- › Securities Lending Agreement Risk lowing the relevant Valuation Day (the “Calculation › Repurchase and reverse repurchase agreement Day”). risk Payment value date for subscriptions and redemptions › Financial derivative instruments risk Within 2 Banking Days following the applicable Valua- The capital invested may fluctuate up or down, and in- tion Day. vestors may not recover the entire value of the capital Calculation of the net asset value initially invested. The effect of net asset value corrections, more fully described in the section “Swing pricing mechanism Risk management method: Commitment approach /Spread”, will not exceed 1%.

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PICTET – PACIFIC EX JAPAN INDEX

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.25% 0.10% 0.30% IS USD 1 million 0.25% 0.10% 0.30% A *** 0.25% 0.10% 0.30% P − 0.40% 0.10% 0.30% R − 0.85% 0.10% 0.30% Z − 0% 0.10% 0.30% J USD 100 million 0.10% 0.10% 0.30% JS USD 100 million 0.10% 0.10% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. Subscription and redemption may also be made in EUR for P USD, P dy USD and R USD Share Classes and the conversion costs will be charged to the Compartment. *** Please refer to www.assetmanagement.pictet

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39. PICTET – DIGITAL

Investment policy and objectives The Compartment may also invest in structured prod- The investment policy of this Compartment aims to ucts, such as bonds or other transferable securities achieve capital growth by investing at least two-thirds of whose returns are linked to the performance of an index, its total assets/total wealth in equities or any other simi- transferable securities or a basket of transferable securi- lar securities issued by companies using digital technol- ties, or an undertaking for collective investment, for ex- ogy to offer interactive services and/or products related ample. to interactive services in the communications sector. The Compartment may enter into Securities Lending Risks will be minimised by diversified geographic distri- Agreements and Repurchase and Reverse Repurchase bution of the portfolio. Indeed, the investment universe Agreements in order to increase its capital or its income is not limited to a specific geographic region (including or to reduce its costs or risks. emerging countries). The Compartment may use derivative techniques and in- This Compartment will hold a diversified portfolio com- struments for efficient management, within the limits posed, within the limits of the investment restrictions, specified in the investment restrictions. of securities in listed companies. These securities may be ordinary or preference shares, and to a lesser extent The investment process integrates ESG criteria based on warrants on transferable securities and options. In addi- proprietary and third-party research to evaluate invest- tion, the Compartment may also invest up to 10% of its ment risks and opportunities. When selecting the Com- net assets in UCITS and other UCIs, including other partment’s investments, securities of issuers with low Compartments of the Fund pursuant to Article 181 of ESG characteristics may be purchased and retained in the 2010 Act. the Compartment’s portfolio.

The Compartment may also invest in depositary receipts Reference index: (such as ADR, GDR, EDR). MSCI ACWI (USD). Used for performance objective and performance measurement. The Compartment may invest up to 30% of its net assets in China A Shares through (i) the QFII quota The portfolio composition is not constrained relative to granted to an entity of the Pictet Group, (ii) the RQFII the benchmark, so the similarity of the Compartment’s quota granted to an entity of the Pictet Group and/or (iii) performance to that of the benchmark may vary. the Shanghai-Hong Kong Stock Connect programme (iv) German Investment Tax Act restriction: the Shenzhen-Hong Kong Stock Connect programme At least 51% of the Compartment’s net assets shall be and/or (v) any similar acceptable securities trading and invested in physical equities (to the exclusion of ADRs, clearing linked programmes or access instruments which GDRs, derivatives and of any lent securities) that are may be available to the Compartment in the future. The listed on a stock exchange. Compartment may also use financial derivative instruments on China A Shares.

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Exposure to total return swaps, Securities Lending initially invested. Agreements, Reverse Repurchase Agreements and Re- Risk management method: purchase Agreements Commitment approach The expected level of exposure to Securities Lending Agreements amounts to 5% of the Compartment’s net Manager: assets. PICTET AM S.A.

The Compartment does not expect to be exposed to total Reference currency of the Compartment: return swaps, Repurchase Agreements and Reverse Re- USD purchase Agreements. Cut-off time for receipt of orders Risk factors Subscription The risks listed below are the most relevant risks of the By 1:00 pm on the relevant Valuation Day. Compartment. Investors should be aware that other risks Redemption may also be relevant to the Compartment. Please refer By 1:00 pm on the relevant Valuation Day. to the section "Risk Considerations" for a full description Switch of these risks. The more restrictive time period of the two Compart- › Collateral risk ments concerned. › Currency risk Frequency of net asset value calculation The net asset value will be determined as at each Bank- › Equity risk ing Day (the “Valuation Day”). › Volatility risk However, the Board of Directors reserves the right not to › Emerging market risk calculate the net asset value or to calculate a net asset › Concentration risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › QFII risk vested and/or which it uses to value a material part of › RQFII risk the assets.

› Stock Connect risk For further information, please refer to our website › Chinese currency exchange rate risk www.assetmanagement.pictet. › Securities Lending Agreement Risk Calculation Day The calculation and publication of the net asset value as › Repurchase and reverse repurchase agreement at a Valuation Day will take place on the relevant Valua- risk tion Day (the “Calculation Day”). › Financial derivative instruments risk Payment value date for subscriptions and redemptions › Structured Finance Securities risk Within 2 Week Days following the applicable Valuation Day. The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital

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PICTET – DIGITAL

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.20% 0.40% 0.30% A *** 1.20% 0.40% 0.30% P − 2.40% 0.40% 0.30% R − 2.90% 0.40% 0.30% Z − 0% 0.40% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. Subscription and redemption may also be made in EUR for P USD, P dy USD and R USD Share Classes and the conversion costs will be charged to the Compartment. *** Please refer to www.assetmanagement.pictet

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40. PICTET – BIOTECH

Typical investor profile acceptable securities trading and clearing linked pro- The Compartment is an actively managed investment ve- grammes or access instruments which may be available hicle for investors: to the Compartment in the future. The Compartment may also use financial derivative instruments on China A › Who wish to invest in shares in the biotechnol- ogy sector worldwide. Shares. › Who are willing to bear significant variations in The Compartment will not invest more than 10% of its market value and thus have a low aversion to assets in bonds or any other debt security (including risk. convertible bonds and preference shares), money market instruments, derivatives and/or structured products Investment policy and objectives This Compartment aims to achieve growth by investing whose underliers are, or offer exposure to, bonds or sim- in equities or similar securities issued by biopharmaceu- ilar debt and interest-rate securities. tical companies that are at the forefront of innovation in By analogy, investments in undertakings for collective the medical sector. The Compartment will invest at least investment whose main objective is to invest in the as- two-thirds of its total assets/total wealth in equities is- sets listed above are also included in the 10% limit. sued by companies operating in this sector. Geograph- The Compartment may also invest in structured prod- ically, the Compartment’s investment universe is not re- ucts, such as bonds or other transferable securities stricted to a particular area (including emerging coun- whose returns are linked to the performance of an index, tries). However, in light of the particularly innovative na- transferable securities or a basket of transferable securi- ture of the pharmaceutical industry in North America ties, or an undertaking for collective investment, for ex- and Western Europe, the vast majority of investments ample. will be made in these regions. The Compartment may enter into Securities Lending To capitalise on particularly innovative projects in the Agreements and Repurchase and Reverse Repurchase pharmaceuticals field, the Biotech Compartment may Agreements in order to increase its capital or its income invest up to 10% of its net assets in Private Equity or to reduce its costs or risks. and/or unlisted securities. The Compartment may use derivative techniques and in- This Compartment will hold a diversified portfolio composed, within the limits of the investment restrictions, struments for efficient management, within the limits of securities in listed companies. These securities may specified in the investment restrictions. be ordinary or preference shares, and to a lesser extent This thematic strategy aims to deliver a financial return warrants on transferable securities and options. In addi- alongside achieving a positive social impact. It invests tion, the Compartment may also invest up to 10% of its mainly in companies that contribute to solving social net assets in UCITS and other UCIs, including other challenges by providing products or services related to, Compartments of the Fund pursuant to Article 181 of for example but not limited to, healthcare accessibility, the 2010 Act. biomedical technology and therapies. The Compartment may also invest in depositary receipts The investment process integrates ESG criteria based on (such as ADR, GDR, EDR). proprietary and third-party research to evaluate invest- The Compartment may invest in China A Shares through ment risks and opportunities. When selecting the Com- (i) the QFII quota granted to an entity of the Pictet partment’s investments, the ESG characteristics of issu- Group (subject to a maximum of 35% of its net assets), ers are taken into account to increase or decrease the (ii) the RQFII quota granted to an entity of the Pictet target weight of securities in the Compartment’s portfo- Group and/or (iii) the Shanghai-Hong Kong Stock Con- lio. nect programme and/or (iv) the Shenzhen-Hong Kong Stock Connect programme and/or (v) any similar

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Reference index: › Repurchase and reverse repurchase agreement MSCI ACWI (USD). Used for performance objective and risk performance measurement. › Financial derivative instruments risk

The Compartment does not expect to be exposed to total Redemption return swaps, Repurchase Agreements and Reverse Re- By 1:00 pm on the relevant Valuation Day. purchase Agreements. Switch Risk factors The more restrictive time period of the two Compart- The risks listed below are the most relevant risks of the ments concerned. Compartment. Investors should be aware that other risks Frequency of net asset value calculation may also be relevant to the Compartment. Please refer The net asset value will be determined as at each Bank- to the section "Risk Considerations" for a full description ing Day (the “Valuation Day”). of these risks. However, the Board of Directors reserves the right not to › Collateral risk calculate the net asset value or to calculate a net asset › Currency risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › Equity risk vested and/or which it uses to value a material part of › Volatility risk the assets.

› Emerging market risk For further information, please refer to our website › Concentration risk www.assetmanagement.pictet. › QFII risk Calculation Day The calculation and publication of the net asset value as › RQFII risk at a Valuation Day will take place on the relevant Valua- › Stock Connect risk tion Day (the “Calculation Day”).

› Chinese currency exchange rate risk Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation › Securities Lending Agreement Risk Day.

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PICTET – BIOTECH

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.20% 0.45% 0.30% A *** 1.20% 0.45% 0.30% P − 2.40% 0.45% 0.30% R − 2.90% 0.45% 0.30% Z − 0% 0.45% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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41. PICTET – PREMIUM BRANDS

Typical investor profile Compartment may also use financial derivative instru- The Compartment is an actively managed investment ve- ments on China A Shares. hicle for investors: The Compartment will not invest more than 10% of its › Who wish to invest on a worldwide level in the assets in bonds or any other debt security (including shares of companies that specialise in high-end convertible bonds and preference shares), money market products and services, and that enjoy broad instruments, derivatives and/or structured products recognition and respond to different human as- whose underliers are, or offer exposure to, bonds or sim- pirations. ilar debt and interest-rate securities. › Who are willing to bear significant variations in market value and thus have a low aversion to By analogy, investments in undertakings for collective risk. investment whose main objective is to invest in the assets listed above are also included in the 10% limit. Investment policy and objectives This Compartment will apply a capital growth strategy by The Compartment may also invest in structured prod- investing at least two-thirds of its total assets/total ucts, such as bonds or other transferable securities wealth in equities issued by companies operating in the whose returns are linked to the performance of an index, premium brands sector, which offer high quality services transferable securities or a basket of transferable securi- and products. These companies enjoy strong market ties, or an undertaking for collective investment, for ex- recognition because they have the ability to create or ample. channel consumer trends. They may also have a certain The Compartment may enter into Securities Lending ability to set prices. These companies are particularly Agreements and Repurchase and Reverse Repurchase specialised in high-end products and services or in fi- Agreements in order to increase its capital or its income nancing this type of activity. The Compartment’s invest- or to reduce its costs or risks. ment universe will not be limited to any particular region (including emerging countries). The Compartment may use derivative techniques and instruments for efficient management, within the limits This Compartment will hold a diversified portfolio com- specified in the investment restrictions. posed, within the limits of the investment restrictions, of securities in listed companies. These securities may The investment process integrates ESG criteria based on be ordinary or preference shares, and to a lesser extent proprietary and third-party research to evaluate invest- warrants on transferable securities and options. In addi- ment risks and opportunities. When selecting the Com- tion, the Compartment may also invest up to 10% of its partment’s investments, securities of issuers with low net assets in UCITS and other UCIs, including other ESG characteristics may be purchased and retained in Compartments of the Fund pursuant to Article 181 of the Compartment’s portfolio. the 2010 Act. Reference index: The Compartment may also invest in depositary receipts MSCI ACWI (EUR). Used for performance objective and (such as ADR, GDR, EDR). performance measurement.

The Compartment may invest up to 30% of its net as- The portfolio composition is not constrained relative to sets in China A Shares through (i) the QFII quota the benchmark, so the similarity of the Compartment’s granted to an entity of the Pictet Group, (ii) the RQFII performance to that of the benchmark may vary. quota granted to an entity of the Pictet Group and/or (iii) the Shanghai-Hong Kong Stock Connect programme (iv) German Investment Tax Act restriction: the Shenzhen-Hong Kong Stock Connect programme At least 51% of the Compartment’s net assets shall be and/or (v) any similar acceptable securities trading and invested in physical equities (to the exclusion of ADRs, clearing linked programmes or access instruments which GDRs, derivatives and of any lent securities) that are may be available to the Compartment in the future. The listed on a stock exchange.

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Exposure to total return swaps, Securities Lending initially invested. Agreements, Reverse Repurchase Agreements and Re- Risk management method: purchase Agreements Commitment approach The expected level of exposure to Securities Lending Agreements amounts to 25% of the Compartment’s net Manager: assets. PICTET AM S.A.

The Compartment does not expect to be exposed to total Reference currency of the Compartment: return swaps, Repurchase Agreements and Reverse Re- EUR purchase Agreements. Cut-off time for receipt of orders Risk factors Subscription The risks listed below are the most relevant risks of the By 1:00 pm on the relevant Valuation Day. Compartment. Investors should be aware that other risks Redemption may also be relevant to the Compartment. Please refer By 1:00 pm on the relevant Valuation Day. to the section "Risk Considerations" for a full description Switch of these risks. The more restrictive time period of the two Compart- › Collateral risk ments concerned. › Currency risk Frequency of net asset value calculation The net asset value will be determined as at each Bank- › Equity risk ing Day (the “Valuation Day”). › Volatility risk However, the Board of Directors reserves the right not to › Emerging market risk calculate the net asset value or to calculate a net asset › Concentration risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › QFII risk vested and/or which it uses to value a material part of › RQFII risk the assets.

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PICTET – PREMIUM BRANDS

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 1.20% 0.45% 0.30% A *** 1.20% 0.45% 0.30% P − 2.40% 0.45% 0.30% R − 2.90% 0.45% 0.30% Z − 0% 0.45% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. Subscription and redemption may also be made in USD for P EUR, P dy EUR and R EUR Share Classes and the conversion costs will be charged to the Compartment. *** Please refer to www.assetmanagement.pictet

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42. PICTET – WATER

Typical investor profile quota granted to an entity of the Pictet Group and/or (iii) The Compartment is an actively managed investment ve- the Shanghai-Hong Kong Stock Connect programme (iv) hicle for investors: the Shenzhen-Hong Kong Stock Connect programme and/or (v) any similar acceptable securities trading and › Who wish to invest in the shares of companies focused on the water-related sector worldwide. clearing linked programmes or access instruments which may be available to the Compartment in the future. The Who are willing to bear significant variations in › Compartment may also use financial derivative instru- market value and thus have a low aversion to ments on China A Shares. risk. The Compartment will not invest more than 10% of its Investment policy and objectives This Compartment aims to invest in equities issued by assets in bonds or any other debt security (including companies operating in the water and air sector world- convertible bonds and preference shares), money market wide (including in emerging countries). instruments, derivatives and/or structured products whose underliers are, or offer exposure to, bonds or sim- The companies targeted in the water sector will include ilar debt and interest-rate securities. water production companies, water conditioning and de- salination companies, water suppliers, water bottling, By analogy, investments in undertakings for collective transport and dispatching companies, companies spe- investment whose main objective is to invest in the as- cialising in the treatment of waste water, sewage and sets listed above are also included in the 10% limit. solid, liquid and chemical waste, companies operating The Compartment may also invest in structured prod- sewage treatment plants and companies providing ucts, such as bonds or other transferable securities equipment, consulting and engineering services in con- whose returns are linked to the performance of an index, nection with the activities described above. transferable securities or a basket of transferable securi- The companies targeted in the air sector will include ties, or an undertaking for collective investment, for ex- companies responsible for inspecting air quality, suppli- ample. ers of air-filtration equipment and manufacturers of cat- The Compartment may enter into Securities Lending alytic converters for vehicles. Agreements and Repurchase and Reverse Repurchase The Compartment will invest at least two-thirds of its to- Agreements in order to increase its capital or its income tal assets/total wealth in equities issued by companies or to reduce its costs or risks. operating in the water sector. The Compartment may use derivative techniques and in- This Compartment will hold a diversified portfolio com- struments for efficient management, within the limits posed, within the limits of the investment restrictions, specified in the investment restrictions. of securities in listed companies. These securities may This thematic strategy aims to deliver a financial return be ordinary or preference shares, and to a lesser extent alongside achieving a positive environmental and/or so- warrants on transferable securities and options. In addi- cial impact. It invests mainly in companies that contrib- tion, the Compartment may also invest up to 10% of its ute to solving environmental and/or social challenges by net assets in UCITS and other UCIs, including other providing products or services related to, for example Compartments of the Fund pursuant to Article 181 of but not limited to, the areas listed above. the 2010 Act. The investment process integrates ESG criteria based on The Compartment may also invest in depositary receipts proprietary and third-party research to evaluate invest- (such as ADR, GDR, EDR). ment risks and opportunities. When selecting the Com- The Compartment may invest up to 30% of its net as- partment’s investments, the ESG characteristics of issu- sets in China A Shares through (i) the QFII quota ers are taken into account to increase or decrease the granted to an entity of the Pictet Group, (ii) the RQFII target weight of securities in the Compartment’s

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portfolio. › Securities Lending Agreement Risk

Reference index: › Repurchase and reverse repurchase agreement MSCI ACWI (EUR). Used for performance objective and risk performance measurement. › Financial derivative instruments risk

The Compartment does not expect to be exposed to total Redemption return swaps, Repurchase Agreements and Reverse Re- By 1:00 pm on the relevant Valuation Day. purchase Agreements. Switch Risk factors The more restrictive time period of the two Compart- The risks listed below are the most relevant risks of the ments concerned. Compartment. Investors should be aware that other risks Frequency of net asset value calculation may also be relevant to the Compartment. Please refer The net asset value will be determined as at each Bank- to the section "Risk Considerations" for a full description ing Day (the “Valuation Day”). of these risks. However, the Board of Directors reserves the right not to › Collateral risk calculate the net asset value or to calculate a net asset › Asset liquidity risk value that cannot be used for trading purposes due to › Currency risk closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of › Equity risk the assets. Volatility risk › For further information, please refer to our website › Emerging market risk www.assetmanagement.pictet.

› Concentration risk Calculation Day The calculation and publication of the net asset value as › QFII risk at a Valuation Day will take place on the relevant Valua- › RQFII risk tion Day (the “Calculation Day”).

› Stock Connect risk Payment value date for subscriptions and redemptions › Chinese currency exchange rate risk Within 2 Week Days following the applicable Valuation Day.

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PICTET – WATER

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 1.20% 0.45% 0.30% A *** 1.20% 0.45% 0.30% P − 2.40% 0.45% 0.30% R − 2.90% 0.45% 0.30% Z − 0% 0.45% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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43. PICTET – INDIAN EQUITIES

Typical investor profile including other Compartments of the Fund pursuant to The Compartment is an actively managed investment ve- Article 181 of the 2010 Act, and, subject to the limits hicle for investors: allowed by the investment restrictions, in warrants on transferable securities and subscription rights. › Who wish to invest in shares issued by companies with headquarters in India and/or whose The Compartment will not invest more than 10% of its main business is conducted in India. assets in bonds or any other debt security (including › Who are willing to bear significant variations in convertible bonds and preference shares), money market market value and thus have a low aversion to instruments, derivatives and/or structured products risk. whose underliers are, or offer exposure to, bonds or sim- Investment policy and objectives ilar debt and interest-rate securities. This Compartment aims to invest directly or indirectly in By analogy, investments in undertakings for collective transferable securities, (described in further detail be- investment whose main objective is to invest in the as- low) issued by companies and institutions that are sets listed above are also included in the 10% limit. based in India or conduct their main business in India. The Compartment may also invest in structured prod- The Compartment will invest a minimum of two-thirds of ucts, such as bonds or other transferable securities its total assets/total wealth in equities issued by compa- whose returns are linked to the performance of an index, nies that are headquartered in India or conduct the ma- transferable securities or a basket of transferable securi- jority of their business in India. ties, or an undertaking for collective investment, for ex- On an ancillary basis, the Compartment may also invest ample. its assets in securities issued by companies that are The Compartment may enter into Securities Lending based in or have their main activity in Pakistan, Bangla- Agreements and Repurchase and Reverse Repurchase desh and Sri Lanka. Agreements in order to increase its capital or its income The Compartment will hold a diversified portfolio pri- or to reduce its costs or risks. marily composed of securities issued by companies The Compartment may use derivative techniques and in- listed on a stock exchange or traded on a regulated mar- struments for efficient management, within the limits ket that operates regularly and is recognised and open to specified in the investment restrictions. the public. The Compartment may invest up to 10% of its net assets in unlisted securities. The investment process integrates ESG criteria based on proprietary and third-party research to evaluate invest- The Compartment may also invest in depositary receipts ment risks and opportunities. When selecting the Com- (such as ADR, GDR, EDR). partment’s investments, securities of issuers with low The portfolio may include ordinary or preference shares ESG characteristics may be purchased and retained in and convertible bonds as well as warrants on transfera- the Compartment’s portfolio. ble securities. The portfolio may also include global de- Reference index: positary receipts (GDRs) issued by companies in India, MSCI India 10/40 (USD). Used for risk monitoring, per- or similar instruments listed on a stock exchange in In- formance objective and performance measurement. dia or elsewhere. If required by market conditions, the portfolio may also The Compartment is designed to offer performance that is likely to be significantly different from that of the hold bonds issued by companies based in India and benchmark. bonds issued or guaranteed by the Indian Government.

In addition, the Compartment may also invest up to German Investment Tax Act restriction: 10% of its net assets in UCITS and other UCIs, At least 51% of the Compartment’s net assets shall be invested in physical equities (to the exclusion of ADRs,

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GDRs, derivatives and of any lent securities) that are of the Compartment’s assets to be invested in India listed on a stock exchange. should be invested indirectly through a company incorporated in Mauritius named Pictet Country (Mauritius) Exposure to total return swaps, Securities Lending Ltd, which is wholly controlled by the Fund and con- Agreements, Reverse Repurchase Agreements and Re- purchase Agreements ducts investment and advisory activities exclusively for The Compartment does not expect to be exposed to total the Compartment (hereafter “PCML”) and in particular return swaps, Securities Lending Agreements, Repur- the advisory activities concerning large-volume redemp- chase Agreements and Reverse Repurchase Agreements. tions of the Compartment’s units. Indirect investments are generally covered by the double taxation agreement Risk factors (DTA) in existence between India and Mauritius. The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks To this end, the Management Company will use the por- may also be relevant to the Compartment. Please refer tion of the Compartment’s assets available for invest- to the section "Risk Considerations" for a full description ment in India to acquire all the PCML shares, which will of these risks. thus be controlled entirely by the Fund. PCML shares will be issued in registered form only. › Collateral risk PCML was initially incorporated on 11 October 1995 as › Settlement risk an offshore limited company under the Mauritius Off- › Asset liquidity risk shore Business Activities Act 1992 in the name of Pic- › Investment restriction risk tet Investments (Mauritius) Limited (No. 15437/2168). PCML holds a “Category 1 Global Business Licence” is- › Currency risk sued pursuant to the Financial Services Act of 2007. › Equity risk PCML has been granted a tax residence certificate from the Commissioner of Income Tax in Mauritius. Accord- › Volatility risk ingly, PCML is considered to be resident in Mauritius for › Emerging market risk tax purposes and may thus benefit from the DTA. How- › Political risk ever, there is no guarantee that PCML will be able to maintain its tax resident status, and the termination of › Tax risk this status could result in the loss of tax benefits, › Securities Lending Agreement Risk thereby affecting the Compartment’s net asset value per › Repurchase and reverse repurchase agreement Share. risk The exclusive purpose of PCML is to perform investment › Financial derivative instruments risk and advisory activities on behalf of the Compartment. The PCML board of directors is composed of Eric A Ven- › Structured Finance Securities risk pin, Jimmy Wong Yuen Tien, Geneviève Lincourt, John The capital invested may fluctuate up or down, and in- Sample and Olivier Ginguené. Geneviève Lincourt, John vestors may not recover the entire value of the capital Sample and Olivier Ginguené are also directors of the initially invested. Fund. The PCML board of directors will at all times include at least two residents of Mauritius and a majority Risk management method: Commitment approach of directors who are also directors of the Fund. PCML’s advisory activities for the Compartment include Managers: PICTET AM Ltd, PICTET AM S.A. providing regular information regarding the applicability of the treaty between India and Mauritius as well as Reference currency of the Compartment: making investment recommendations for the Indian USD market. PCML also advises in cases of redemptions of Investments through Pictet Country (Mauritius) Ltd the Compartment’s Shares greater than 20% of the net The Management Company may decide that the portion value in order to enable the manager to divest as

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necessary when faced with large-volume redemption requests. Currently, the Compartment is making any new investment directly in India rather than through PCML and all PCML’s financial statements will be audited by Deloitte the investments held by PCML have already been sold. S.A. For the establishment of the Compartment’s financial statements and semi-annual and annual reports, The Board of Directors took the decision to liquidate PCML’s financial results will be consolidated in the fi- PCML. Liquidation costs associated with liquidating PCML will be borne by the Compartment. nancial results of the Compartment. Similarly, these reports will contain a breakdown of the Compartment’s In addition, there is the possibility that a retrospective portfolio in terms of the underlying securities held by tax assessment could be levied on PCML after liquida- PCML. In accordance with the investment restrictions tion for which the Compartment would be liable. This li- contained in the Prospectus, the underlying investments ability will have to be borne out of the assets of the Compartment which may have a negative impact on the will be taken into consideration as if PCML did not exist. Compartment's net asset value. PCML operates as an investment holding company. Cut-off time for receipt of orders The Mauritian supervisory commission (the Mauritius Fi- Subscription nancial Services Commission) does not stand surety for By 1:00 pm on the relevant Valuation Day. the solvency of PCML or for the accuracy of any statement or opinion issued in its regard. Redemption By 1:00 pm on the relevant Valuation Day. Depositary Bank in India The Depositary Bank and the Manager have appointed Switch The more restrictive time period of the two Compart- Deutsche Bank AG, Mumbai Branch, as local custodian ments concerned. of the securities and other assets of the Compartment held in India. Frequency of net asset value calculation The net asset value will be determined as at each Bank- Pictet Asset Management Ltd has been granted FII sta- ing Day (the “Valuation Day”). tus by the SEBI and is therefore authorised to invest in Indian securities on behalf of the Fund. The Fund’s in- However, the Board of Directors reserves the right not to vestments in India are largely dependent on the FII sta- calculate the net asset value or to calculate a net asset tus granted to the manager, and, while it may be as- value that cannot be used for trading purposes due to sumed that this authorisation will be renewed, this can- closure of one or more markets in which the Fund is in- not be guaranteed. vested and/or which it uses to value a material part of the assets. In accordance with Indian legislation governing foreign investments, the Compartment’s assets must be held by For further information, please refer to our website the Indian correspondent on behalf of Pictet Asset Man- www.assetmanagement.pictet. agement Ltd, a PCML sub-account. Calculation Day By investing through PCML, the Fund intends to take The calculation and publication of the net asset value as advantage of the DTA between Mauritius and India, as at a Valuation Day will take place on the Valuation Day described more fully above. It cannot be guaranteed that concerned (the “Calculation Day”). the Fund will always have these tax advantages. Further- Payment value date for subscriptions and redemptions more, amendments could also be made to the DTA, and Within 4 Week Days following the applicable Valuation these could affect the taxation of the Fund’s invest- Day. ments and/or the taxation of PCML and, consequently, the net asset value of Shares in the Fund.

Please note that, for Indian equities acquired as from

April 1, 2017, PCML does not benefit from the DTA between India and Mauritius anymore.

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PICTET – INDIAN EQUITIES

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.20% 0.65% 0.30% A *** 1.20% 0.65% 0.30% P − 2.40% 0.65% 0.30% R − 2.90% 0.65% 0.30% Z − 0% 0.65% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

PCML will be responsible for and pay certain costs and expenses arising in relation to its investment activities in Indian securities. These costs and expenses include brokerage fees and commissions, the costs of transactions associated with exchanging rupees into US dollars, and the costs of registration and taxes in relation to the incorporation and activities of PCML. PCML will also be responsible for its own operating expenses, including the costs of its local domiciliation and administrative agent and local auditor.

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44. PICTET – JAPANESE EQUITY OPPORTUNITIES

Typical investor profile transferable securities or a basket of transferable securi- The Compartment is an actively managed investment ve- ties, or an undertaking for collective investment, for ex- hicle for investors: ample.

› Who wish to invest in shares issued by compa- The Compartment may enter into Securities Lending nies with headquarters in Japan and/or whose Agreements and Repurchase and Reverse Repurchase main business is conducted in Japan. Agreements in order to increase its capital or its income › Who are willing to bear variations in market or to reduce its costs or risks. value and thus have a low aversion to risk. The Compartment may use derivative techniques and in- Investment policy and objectives struments for efficient management, within the limits This Compartment aims to enable investors to partici- specified in the investment restrictions. pate in the growth in the Japanese equity market. The The investment process integrates ESG criteria based on Compartment will seek to maximise the total return in proprietary and third-party research to evaluate invest- terms of Japanese yen through capital gains from investment risks and opportunities. When selecting the Com- ment in a broadly diversified portfolio of Japanese equi- partment’s investments, securities of issuers with low ties. Dependent on market opportunities, the Compart- ESG characteristics may be purchased and retained in ment may additionally maximise the potential for alpha the Compartment’s portfolio. generation through the use of paired long/short positions. Reference index: Topix Net Return (JPY). Used for portfolio composition, Paired long/short positions refers to a strategy made up risk monitoring, performance objective and performance of long positions relative to short positions via derivative measurement. instruments, as authorised in the investment restrictions. Under normal market conditions, the net ex- The Compartment is designed to offer performance that posure of the portion invested in equities, thus the net is likely to be significantly different from that of the sum of long and short positions should be close to benchmark. 100% of the net assets, which is close to the exposure in a traditional “long only” fund. However, the Compart- German Investment Tax Act restriction: ment may hold a maximum of 150% in long positions At least 51% of the Compartment’s net assets shall be and up to 50% in short positions invested in physical equities (to the exclusion of ADRs, GDRs, derivatives and of any lent securities) that are The Compartment will invest a minimum of two-thirds of listed on a stock exchange. its total assets/total wealth in equities issued by companies that are headquartered in Japan or conduct the ma- Exposure to total return swaps, securities lending jority of their business in Japan. transactions, Reverse Repurchase Agreements and Repurchase Agreements The Compartment may also invest in depositary receipts By way of derogation to the maximum exposure (such as ADR, GDR, EDR). referred to in the general part of the Prospectus, no In addition, the Compartment may also invest up to more than 40% of the Compartment’s net assets will be subject to total return swaps. 10% of its net assets in UCITS and other UCIs, including other Compartments of the Fund pursuant to Article The expected level of exposure to total return swaps 181 of the 2010 Act, and, subject to the limits allowed amounts to 5% of the Compartment’s net assets. by the investment restrictions, in warrants on transferable securities and options. The expected level of exposure to Securities Lending Agreements amounts to 20% of the Compartment’s net The Compartment may also invest in structured prod- assets. ucts, such as bonds or other transferable securities whose returns are linked to the performance of an index, The Compartment does not expect to be exposed to

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Repurchase Agreements and Reverse Repurchase Agree- Managers: ments. PICTET AM Ltd, PICTET AM S.A.

Reference currency of the Compartment: Risk factors JPY The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks Cut-off time for receipt of orders may also be relevant to the Compartment. Please refer Subscription By 1:00 pm on the relevant Valuation Day. to the section "Risk Considerations" for a full description of these risks. Redemption By 1:00 pm on the relevant Valuation Day. › Collateral risk › Equity risk Switch The more restrictive time period of the two Compart- › Volatility risk ments concerned.

› Securities Lending Agreement Risk Frequency of net asset value calculation › Repurchase and reverse repurchase agreement The net asset value will be determined as at each Bank- risk ing Day (the “Valuation Day”). › Financial derivative instruments risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › Structured Finance Securities risk value that cannot be used for trading purposes due to › Leverage risk closure of one or more markets in which the Fund is in- The capital invested may fluctuate up or down, and invested and/or which it uses to value a material part of vestors may not recover the entire value of the capital the assets. initially invested. For further information, please refer to our website Risk management method: www.assetmanagement.pictet. Relative value at risk (VaR). The VaR of the Compart- Calculation Day ment shall be compared with the VaR of the TOPIX Net The calculation and publication of the net asset value as Return (JPY). at a Valuation Day will take place on the Valuation Day Expected leverage: concerned (the “Calculation Day”). 30%. Payment value date for subscriptions and redemptions Depending on market conditions, the leverage may be Within 3 Week Days following the applicable Valuation greater. Day. Leverage calculation method: Sum of notional amounts.

PICTET – JAPANESE EQUITY OPPORTUNITIES

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I JPY 100 million 0.90% 0.40% 0.30% A *** 0.90% 0.40% 0.30% P − 1.80% 0.40% 0.30% R − 2.50% 0.40% 0.30% Z − 0% 0.40% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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45. PICTET – ASIAN EQUITIES EX JAPAN

Typical investor profile similar debt and interest-rate securities. The Compartment is an actively managed investment ve- By analogy, investments in undertakings for collective hicle for investors: investment whose main objective is to invest in the as- › Who wish to invest in shares of Asian compa- sets listed above are also included in the 10% limit. nies, with the exception of Japan. The Compartment may also invest in structured prod- › Who are willing to bear significant variations in ucts, such as bonds or other transferable securities market value and thus have a low aversion to whose returns are linked to the performance of an index, risk. transferable securities or a basket of transferable securi- Investment policy and objectives ties, or an undertaking for collective investment, for ex- This Compartment aims to achieve long-term capital ample. growth by investing at least two-thirds of its total as- The Compartment may enter into Securities Lending sets/total wealth in equities issued by companies that Agreements and Repurchase and Reverse Repurchase have their registered headquarters and/or conduct the Agreements in order to increase its capital or its income majority of their business in Asian countries (including or to reduce its costs or risks. Mainland China), with the exception of Japan. The Com- partment may also, within the limits of the investment The Compartment may use derivative techniques and in- restrictions, invest in warrants on transferable securities struments for efficient management, within the limits and in convertible bonds. specified in the investment restrictions.

The Compartment may invest up to 49% of its net as- The investment process integrates ESG criteria based on sets in China A Shares through (i) the QFII quota proprietary and third-party research to evaluate invest- granted to an entity of the Pictet Group (subject to a ment risks and opportunities. When selecting the Com- maximum of 35% of its net assets), (ii) the RQFII quota partment’s investments, securities of issuers with low granted to an entity of the Pictet Group and/or (iii) the ESG characteristics may be purchased and retained in Shanghai-Hong Kong Stock Connect programme (iv) the the Compartment’s portfolio. Shenzhen-Hong Kong Stock Connect programme and/or Reference index: (v) any similar acceptable securities trading and clearing MSCI AC Asia ex-Japan (USD). Used for portfolio com- linked programmes or access instruments which may be position, risk monitoring, performance objective and available to the Compartment in the future. The Com- performance measurement. partment may also use financial derivative instruments on China A Shares. The Compartment is designed to offer performance that is likely to be significantly different from that of the The Compartment may also invest in depositary receipts benchmark. (such as ADR, GDR, EDR).

In addition, the Compartment may also invest up to German Investment Tax Act restriction: 10% of its net assets in UCITS and other UCIs, includ- At least 51% of the Compartment’s net assets shall be ing other Compartments of the Fund pursuant to Article invested in physical equities (to the exclusion of ADRs, 181 of the 2010 Act. GDRs, derivatives and of any lent securities) that are listed on a stock exchange. The Compartment will not invest more than 10% of its assets in bonds or any other debt security (including convertible bonds and preference shares), money market instruments, derivatives and/or structured products whose underliers are, or offer exposure to, bonds or

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Exposure to total return swaps, securities lending Managers : transactions, Reverse Repurchase Agreements and PICTET AM Ltd Repurchase Agreements Reference currency of the Compartment: The Compartment does not expect to be exposed to USD total return swaps, Repurchase Agreements and reverse Repurchase Agreements. Investment through Pictet Asian Equities (Mauritius) The expected level of exposure to Securities Lending Limited Agreements amounts to 15% of the Compartment’s net The Management Company may decide that the portion assets. of the Compartment’s assets to be invested in India should be invested indirectly through a company incor- Risk factors porated in Mauritius named Pictet Asian Equities (Mau- The risks listed below are the most relevant risks of the ritius) Limited, which is wholly controlled by the Fund Compartment. Investors should be aware that other risks and conducts its advisory activity exclusively for the may also be relevant to the Compartment. Please refer Compartment (hereinafter “PAEML”) and in particular to the section "Risk Considerations" for a full description investment and advisory activities concerning large vol- of these risks. ume redemptions of the Compartment’s Shares. Indirect › Collateral risk investments are generally covered by the double taxation › Settlement risk agreement (DTA) in existence between India and Mauri- tius. › Asset liquidity risk To this end, the Management Company will use the por- › Investment restriction risk tion of the Compartment’s assets available for invest- › Currency risk ment in India to acquire all the PAEML shares which will thus be controlled entirely by the Fund on behalf of › Equity risk the Pictet – Asian Equities Ex Japan Compartment. › Volatility risk PAEML shares will be issued in registered form only.

› Emerging market risk The exclusive purpose of PAEML is to perform invest- › Political risk ment and advisory activities on behalf of the Compart- ment. The members of the PAEML board of directors › Tax risk are: › Risk of investing in the PRC Eric A Venpin › QFII risk Jimmy Wong Yuen Tien › RQFII risk Geneviève Lincourt John Sample › Stock Connect risk Olivier Ginguené › Chinese currency exchange rate risk The board of directors will at all times include at least › Securities Lending Agreement Risk two residents of Mauritius and a majority of directors who are also directors of the Fund. › Repurchase and reverse repurchase agreement risk PAEML’s advisory activities for the Compartment include providing regular information regarding the ap- › Financial derivative instruments risk plicability of the treaty between India and Mauritius as › Structured Finance Securities risk well as making investment recommendations for the In- The capital invested may fluctuate up or down, and indian market. PAEML also advises in cases of redemp- vestors may not recover the entire value of the capital tions of the Compartment’s Shares greater than 20% of initially invested. the net value in order to enable the manager to divest as necessary when faced with large volumes of redemption Risk management method: requests. Commitment approach

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The financial statements of PAEML will be audited by Indian securities on behalf of the Fund. The Deloitte S.A., which is the statutory auditor for the Fund’s investments in India are largely depend- Fund, or by any other statutory auditor established in ent on the FII status granted to the manager, and, while it may be assumed that this authori- Mauritius that is an associate of the Fund’s statutory au- sation will be renewed, this cannot be guaran- ditor. For the establishment of the Compartment’s finan- teed. cial statements and semi-annual and annual reports, PAEML’s financial results will be consolidated in the fi- b. In accordance with Indian legislation governing foreign investments, the Compartment’s assets nancial results of the Compartment. Similarly, these re- must be held by the Indian correspondent on ports will contain a breakdown of the Compartment’s behalf of Pictet Asset Management Ltd, in a portfolio in terms of the underlying securities held by PAEML sub-account. PAEML. In accordance with the investment restrictions c. By investing through PAEML, the Fund intends contained in the Prospectus, the underlying investments to take advantage of the DTA between Mauritius will be taken into consideration as if PAEML did not ex- and India, as described more fully above. It can- ist. not be guaranteed that the Fund will always PAEML was incorporated on 24 February 2009 in Mau- have these tax advantages. Furthermore, amendments could also be made to the DTA, and ritius and holds a Category 1 Global Business Licence in these could affect the taxation of the Fund’s in- compliance with the Financial Services Act of 2007. vestments and/or the taxation of PAEML and, PAEML has obtained a tax residence certificate from the consequently, the value of Shares in the Fund. Commissioner of Income Tax in Mauritius. Currently, the Compartment is making any new invest- Accordingly, PAEML is considered to be resident in ment directly in India rather than through PAEML, and all the investments held by PAEML have already been Mauritius for tax purposes and may thus take advantage sold. of the DTA. However, there is no guarantee that PAEML will be able to maintain its tax resident status, and the The Board of Directors took the decision to liquidate termination of this status could result in the loss of tax PAEML. Liquidation costs associated with liquidating benefits, thereby affecting the Compartment’s net asset PAEML will be borne by the Compartment. value per Share. In addition, there is the possibility that a retrospective PAEML operates as an “investment holding company”. tax assessment could be levied on PAEML after liquidation for which the Compartment would be liable. This li- Investors in PAEML are not protected by any legal provi- ability will have to be borne out of the assets of the sion of Mauritius in the event of the bankruptcy of Compartment which may have a negative impact on the PAEML. Compartment's net asset value.

The Mauritian supervisory commission (“the Mauritius Cut-off time for receipt of orders Financial Services Commission”) does not answer for Subscription the solvency of PAEML or to the accuracy of any state- By 1:00 pm on the relevant Valuation Day. ment or opinion issued in its regard. Redemption Correspondent of the Depositary Bank in India By 1:00 pm on the relevant Valuation Day. The Depositary Bank has appointed Deutsche Bank AG, Switch Mumbai Branch, as local custodian of the securities and The more restrictive time period of the two Compart- other assets of the Compartment in India. ments concerned. For the portion of assets to be invested in India, inves- Frequency of net asset value calculation tors should note the following: The net asset value will be determined as at each Bank- a. Pictet Asset Management Ltd has been granted ing Day (the “Valuation Day”). Foreign Institutional Investor (“FII”) status by However, the Board of Directors reserves the right not to the Securities and Exchange Board of India (“SEBI”) and is therefore authorised to invest in calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to

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closure of one or more markets in which the Fund is in- at a Valuation Day will take place on the Valuation Day vested and/or which it uses to value a material part of concerned (the “Calculation Day”). the assets. Payment value date for subscriptions and redemptions For further information, please refer to our website Within 4 Week Days following the applicable Valuation www.assetmanagement.pictet. Day.

Calculation Day The calculation and publication of the net asset value as

PICTET – ASIAN EQUITIES EX JAPAN

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.20% 0.35% 0.30% A *** 1.20% 0.35% 0.30% P − 2.40% 0.35% 0.30% R − 2.90% 0.35% 0.30% Z − 0% 0.35% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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46. PICTET – GREATER CHINA

› Who wish to invest in shares of companies par- The Compartment may also invest in structured prod- ticipating in the growth of the Chinese economy ucts, such as bonds or other transferable securities by making investments in China, Taiwan and whose returns are linked to the performance of an index, Hong Kong. transferable securities or a basket of transferable securi- › Who are willing to bear significant variations in ties, or an undertaking for collective investment, for ex- market value and thus have a low aversion to ample. risk. The Compartment may enter into Securities Lending Investment policy and objectives Agreements and Repurchase and Reverse Repurchase This Compartment will invest at least two-thirds of its Agreements in order to increase its capital or its income total assets/total wealth in equities issued by companies or to reduce its costs or risks. that are headquartered in and/or conduct their main activity in Hong Kong, China or Taiwan. The Compartment may use derivative techniques and instruments for efficient management, within the limits This Compartment will hold a diversified portfolio, gen- specified in the investment restrictions. erally composed of securities issued by listed companies. These securities may be ordinary or preference The investment process integrates ESG criteria based on shares, convertible bonds and, to a lesser extent, war- proprietary and third-party research to evaluate invest- rants on transferable securities and options. In addition, ment risks and opportunities. When selecting the Com- the Compartment may also invest up to 10% of its net partment’s investments, securities of issuers with low assets in UCITS and other UCIs, including other Com- ESG characteristics may be purchased and retained in partments of the Fund pursuant to Article 181 of the the Compartment’s portfolio. 2010 Act. Reference index: The Compartment may invest in China A Shares through MSCI Golden Dragon 10/40 (USD). Used for risk moni- (i) the QFII quota granted to an entity of the Pictet toring, performance objective and performance measure- Group (subject to a maximum of 35% of its net assets), ment.

(ii) the RQFII quota granted to an entity of the Pictet The Compartment is designed to offer performance that Group (iii) the Shanghai-Hong Kong Stock Connect pro- is likely to be significantly different from that of the gramme (iv) the Shenzhen-Hong Kong Stock Connect benchmark. programme and/or (v) any similar acceptable securities trading and clearing linked programmes or access in- German Investment Tax Act restriction: struments which may be available to the Compartment At least 51% of the Compartment’s net assets shall be in the future. The Compartment may also use financial invested in physical equities (to the exclusion of ADRs, derivative instruments on China A Shares. GDRs, derivatives and of any lent securities) that are The Compartment may also invest in depositary receipts listed on a stock exchange. (such as ADR, GDR, EDR).

The Compartment will not invest more than 10% of its assets in bonds or any other debt security (including convertible bonds and preference shares), money market instruments, derivatives and/or structured products whose underliers are, or offer exposure to, bonds or similar debt and interest-rate securities.

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Exposure to total return swaps, securities lending › Structured Finance Securities risk transactions, Reverse Repurchase Agreements and The capital invested may fluctuate up or down, and in- Repurchase Agreements vestors may not recover the entire value of the capital The expected level of exposure to Securities Lending Agreements amounts to 20% of the Compartment’s net initially invested. assets. Risk management method: Commitment approach The Compartment does not expect to be exposed to total return swaps, Repurchase Agreements and Reverse Re- Managers: purchase Agreements. PICTET AM Ltd., PICTET AM HK Reference currency of the Compartment: Risk factors USD The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks Cut-off time for receipt of orders may also be relevant to the Compartment. Please refer Subscription By 1:00 pm on the relevant Valuation Day. to the section "Risk Considerations" for a full description of these risks. Redemption By 1:00 pm on the relevant Valuation Day. › Collateral risk Switch Asset liquidity risk › The more restrictive time period of the two Compart- › Investment restriction risk ments concerned.

› Currency risk Frequency of net asset value calculation The net asset value will be determined as at each Bank- › Equity risk ing Day (the “Valuation Day”). › Volatility risk However, the Board of Directors reserves the right not to › Emerging market risk calculate the net asset value or to calculate a net asset › Political risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › Tax risk vested and/or which it uses to value a material part of › Risk of investing in the PRC the assets.

› QFII risk For further information, please refer to our website › RQFII risk www.assetmanagement.pictet. › Stock Connect risk Calculation Day The calculation and publication of the net asset value as › Chinese currency exchange rate risk at a Valuation Day will take place on the Valuation Day › Securities Lending Agreement Risk concerned (the “Calculation Day”).

› Repurchase and reverse repurchase agreement Payment value date for subscriptions and redemptions risk Within 3 Week Days following the applicable Valuation › Financial derivative instruments risk Day.

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PICTET – GREATER CHINA

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.20 % 0.45% 0.30% A *** 1.20 % 0.45% 0.30% P − 2.40% 0.45% 0.30% R − 2.90% 0.45% 0.30% Z − 0% 0.45% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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47. PICTET – JAPANESE EQUITY SELECTION

Typical investor profile instruments for efficient management, within the limits The Compartment is an actively managed investment ve- specified in the investment restrictions. hicle for investors: The investment process integrates ESG criteria based on › Who wish to invest in a limited number of equi- proprietary and third-party research to evaluate invest- ties issued by companies with headquarters in ment risks and opportunities. When selecting the Com- Japan and/or whose main activities are con- partment’s investments, securities of issuers with low ducted in Japan. ESG characteristics may be purchased and retained in › Who are willing to bear variations in market the Compartment’s portfolio. value and thus have a low aversion to risk. Reference index: Investment policy and objectives MSCI Japan (JPY). Used for portfolio composition, risk This Compartment aims to enable investors to benefit monitoring, performance objective and performance from growth in the Japanese equity market. measurement. The Compartment will invest a minimum of two-thirds of The Compartment is designed to offer performance that its total assets/total wealth in equities issued by compa- is likely to be significantly different from that of the nies that are headquartered in Japan or conduct the ma- benchmark. jority of their business in Japan.

The portfolio will be composed of a limited selection of German Investment Tax Act restriction: securities that, in the opinion of the manager, have the At least 51% of the Compartment’s net assets shall be most favourable outlook. invested in physical equities (to the exclusion of ADRs, GDRs, derivatives and of any lent securities) that are This Compartment will hold a diversified portfolio, gen- listed on a stock exchange. erally composed of securities issued by listed companies. These securities may be ordinary or preference Exposure to total return swaps, securities lending shares, convertible bonds and, to a lesser extent, war- transactions, Reverse Repurchase Agreements and Repurchase Agreements rants on transferable securities and options. In addition, The expected level of exposure to securities the Compartment may also invest up to 10% of its net lending transactions amounts to 20% of the Compart- assets in UCITS and other UCIs, including other Com- ment’s net assets. partments of the Fund pursuant to Article 181 of the 2010 Act. The Compartment does not expect to be exposed to total The Compartment may also invest in depositary receipts return swaps, repurchase agreement and reverse repur- (such as ADR, GDR, EDR). chase agreement.

The Compartment may also invest in structured prod- Risk factors ucts, such as bonds or other transferable securities The risks listed below are the most relevant risks of the whose returns are linked to the performance of an index, Compartment. Investors should be aware that other risks transferable securities or a basket of transferable securi- may also be relevant to the Compartment. Please refer ties, or an undertaking for collective investment, for ex- to the section "Risk Considerations" for a full description ample. of these risks. The Compartment may enter into Securities Lending › Collateral risk Agreements and Repurchase and Reverse Repurchase › Equity risk Agreements in order to increase its capital or its income or to reduce its costs or risks. › Volatility risk

The Compartment may use derivative techniques and › Securities Lending Agreement Risk

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Manager: For further information, please refer to our website PICTET AM Ltd www.assetmanagement.pictet. Reference currency of the Compartment: Calculation Day JPY The calculation and publication of the net asset value as Cut-off time for receipt of orders at a Valuation Day will take place on the Valuation Day Subscription concerned (the “Calculation Day”). By 1:00 pm on the relevant Valuation Day. Payment value date for subscriptions and redemptions Redemption Within 3 Week Days following the applicable Valuation By 1:00 pm on the relevant Valuation Day. Day. Switch The more restrictive time period of the two

PICTET – JAPANESE EQUITY SELECTION

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I JPY 100 million 0.90 % 0.40% 0.30% A *** 0.90 % 0.40% 0.30% P − 1.80% 0.40% 0.30% R − 2.50% 0.40% 0.30% Z − 0% 0.40% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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48. PICTET – HEALTH

› Who wish to invest in equities of international The Compartment may also invest in structured prod- companies active in segments related to health. ucts, such as bonds or other transferable securities › Who are willing to bear significant variations in whose returns are linked to the performance of an index, market value and thus have a low aversion to transferable securities or a basket of transferable securi- risk. ties, or an undertaking for collective investment, for example. Investment policy and objectives This Compartment aims to achieve capital growth by in- The Compartment may enter into Securities Lending vesting primarily in equities or similar securities issued Agreements and Repurchase and Reverse Repurchase by companies that are active in sectors related to Agreements in order to increase its capital or its income health. The Compartment may invest in any country (in- or to reduce its costs or risks. cluding emerging countries). The Compartment may use derivative techniques and in- This Compartment will hold a diversified portfolio, gen- struments for efficient management, within the limits erally composed of securities issued by listed compa- specified in the investment restrictions. nies. These securities may be ordinary or preference This thematic strategy aims to deliver a financial return shares, convertible bonds and to a lesser extent warrants alongside achieving a positive social impact. It invests on transferable securities and options. In addition, the mainly in companies that contribute to solving social Compartment may also invest up to 10% of its net as- challenges by providing products or services related to, sets in UCITS and other UCIs, including other Compart- for example but not limited to, improving health. ments of the Fund pursuant to Article 181 of the 2010 Act. The investment process integrates ESG criteria based on The Compartment may invest in China A Shares through proprietary and third-party research to evaluate investment risks and opportunities. When selecting the Com- (i) the QFII quota granted to an entity of the Pictet partment’s investments, the ESG characteristics of issu- Group (subject to a maximum of 35% of its net assets), ers are taken into account to increase or decrease the (ii) the RQFII quota granted to an entity of the Pictet target weight of securities in the Compartment’s portfo- Group and/or (iii) the Shanghai-Hong Kong Stock Con- lio. nect programme and/or (iv) the Shenzhen-Hong Kong Stock Connect programme and/or (v) any similar ac- Reference index: ceptable securities trading and clearing linked pro- MSCI ACWI (USD). Used for performance objective and grammes or access instruments which may be available performance measurement. to the Compartment in the future.. The Compartment may also use financial derivative instruments on China A The portfolio composition is not constrained relative to Shares. the benchmark, so the similarity of the Compartment’s performance to that of the benchmark may vary. The Compartment may also invest in depositary receipts (such as ADR, GDR, EDR). German Investment Tax Act restriction: The Compartment will not invest more than 10% of its At least 51% of the Compartment’s net assets shall be assets in bonds or any other debt security (including invested in physical equities (to the exclusion of ADRs, convertible bonds and preference shares), money market GDRs, derivatives and of any lent securities) that are instruments, derivatives and/or structured products listed on a stock exchange. whose underliers are, or offer exposure to, bonds or similar debt and interest-rate securities.

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Exposure to total return swaps, securities lending initially invested. transactions, Reverse Repurchase Agreements and Risk management method: Repurchase Agreements Commitment approach The expected level of exposure to Securities Lending Agreements amounts to 5% of the Compartment’s net Manager: assets. PICTET AM S.A.

› Stock Connect risk For further information, please refer to our website › Chinese currency exchange rate risk www.assetmanagement.pictet. › Securities Lending Agreement Risk Calculation Day The calculation and publication of the net asset value as › Repurchase and reverse repurchase agreement at a Valuation Day will take place on the relevant Valua- risk tion Day (the “Calculation Day”). › Financial derivative instruments risk Payment value date for subscriptions and redemptions › Structured Finance Securities risk Within 2 Week Days following the applicable Valuation Day. › Leverage risk The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital

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PICTET – HEALTH

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49. PICTET – EMERGING MARKETS INDEX

Typical investor profile Compartment, existing differences and the potential The Compartment is a passively managed investment ve- mismatch between the Compartment and the Bench- hicle for investors: mark Index when the markets are closed.

› Who wish to replicate the performance of the The Compartment may marginally invest in securities MSCI Emerging Markets Index. that are not part of the benchmark whenever necessary › Who are willing to bear significant variations in (e.g. when the index is rebalanced, in case of corporate market value and thus have a low aversion to action or to manage cashflows), or in exceptional cir- risk. cumstances such as market disruptions or extreme volatility. As a consequence, there might be substantial dif- Investment policy and objectives The Compartment aims for the full and complete physi- ferences between the composition of the Compartment’s cal replication of the MSCI Emerging Markets Index portfolio and that of the Benchmark Index. (hereinafter the “Benchmark Index”). It aims to achieve Because the Compartment aims to physically replicate its investment objective by investing in a portfolio of the Benchmark Index, the composition of the portfolio transferable securities or other eligible assets compris- will not be adjusted, except (if applicable) in an effort to ing all (or, on an exceptional basis, a substantial num- better reproduce the performance of the Benchmark In- ber) of the components of the index concerned. dex. Consequently, the Compartment will not aim to The Compartment may invest in China A Shares through “outperform” the Benchmark Index and will not try to (i) the QFII quota granted to an entity of the Pictet adopt a defensive positioning when markets are declin- Group (subject to a maximum of 35% of its net assets), ing or considered overvalued. A decline in the Bench- (ii) the RQFII quota granted to an entity of the Pictet mark Index could thus lead to a corresponding decline Group and/or (iii) the Shanghai-Hong Kong Stock Con- in the value of the Compartment’s Shares. nect programme and/or (iv) the Shenzhen-Hong Kong Investors should also be aware that rebalancing the Stock Connect programme and/or (v) any similar ac- Benchmark Index may incur transaction fees that will be ceptable securities trading and clearing linked pro- borne by the Compartment and may affect the Compart- grammes or access instruments which may be available ment’s net asset value. to the Compartment in the future. The Compartment In addition to the specific risks linked to the physical may also use financial derivative instruments on China A replication of the Benchmark Index, investors should be Shares. aware that the Compartment is more generally subject to The composition of the Benchmark Index may be ob- market risks (i.e. the risk of the decrease in the value of tained at the address: http://www.msci.com. As a rule, an investment due to changes in market factors such as the Benchmark Index shall be rebalanced four times a exchange rates, interest rates, share prices or volatility). year. The Compartment may, in application of Article 44 of The a priori tracking error between the change in the the 2010 Act, invest up to 20% (and even 35% (for a value of the underliers of the Compartment and those of single issuer) in exceptional market circumstances, par- the Benchmark Index is expected to be below 0.30% ticularly in the case of regulated markets where certain p.a. in normal market conditions. transferable securities are largely dominant) of its net Due to this physical replication, it may be difficult or assets in the same issuer in order to replicate the com- even impossible to purchase all the components of the position of its Benchmark Index. Benchmark Index in proportion to their weighting in the The Compartment will hold a diversified portfolio and Benchmark Index or to purchase certain components could contain convertible bonds. due to their liquidity, the investment limits described in The Compartment will not invest in UCITS and other the section “Investment Restrictions”, other legal or reg- UCIs. ulatory limits, transaction and other fees incurred by the

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The Compartment may conduct non-deliverable forward Risk factors transactions. A Non-Deliverable Forward is a bilateral fi- The risks listed below are the most relevant risks of the nancial contract on an exchange rate between a strong Compartment. Investors should be aware that other risks currency and an emerging currency for future value may also be relevant to the Compartment. Please refer date. At maturity, there will be no delivery of the emerg- to the section "Risk Considerations" for a full description ing currency; instead there is a cash settlement of the of these risks. contract’s financial result in the strong currency. › Collateral risk The International Swaps and Derivatives Association › Asset liquidity risk (ISDA) has published standardised documentation for these transactions, included in the ISDA Master Agree- › Investment restriction risk ment. The Compartment may only conduct non-delivera- › Currency risk ble forward transactions with leading financial institu- › Equity risk tions that specialise in this type of transaction, and with strict adherence to the standardised provisions of the › Volatility risk ISDA Master Agreement. › Emerging market risk If the manager deems it necessary and in the best inter- › Political risk est of the Shareholders, and to ensure adequate liquid- › Risk of investing in Russia ity, the Compartment may hold liquid instruments such as deposits and money market instruments, among oth- › QFII risk ers. › RQFII risk If the manager deems it necessary and in the best inter- › Stock Connect risk est of the Shareholders, and to minimise the risk of un- derperforming the Benchmark, the Compartment may › Chinese currency exchange rate risk use financial derivative instruments and techniques for › Securities Lending Agreement Risk efficient management, within the limits specified in the › Repurchase and reverse repurchase agreement investment restrictions. risk The Compartment may enter into Securities Lending › Financial derivative instruments risk Agreements and Repurchase and Reverse Repurchase Agreements in order to increase its capital or its income The capital invested may fluctuate up or down, and in- or to reduce its costs or risks. vestors may not recover the entire value of the capital initially invested. German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall be Risk management method: invested in physical equities (to the exclusion of ADRs, Commitment approach GDRs, derivatives and of any lent securities) that are Managers: listed on a stock exchange. PICTET AM Ltd, PICTET AM S.A.

Exposure to total return swaps, securities lending Reference currency of the Compartment: transactions, Reverse Repurchase Agreements and USD Repurchase Agreements Cut-off time for receipt of orders The expected level of exposure to Securities Lending Subscription Agreements amounts to 5% of the Compartment’s net By 12:00 noon on the Banking Day preceding the rele- assets. vant Valuation Day. The Compartment does not expect to be exposed to total Redemption return swaps, Repurchase Agreements and Reverse Re- By 12:00 noon on the Banking Days preceding the rele- purchase Agreements. vant Valuation Day.

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Switch at a Valuation Day will take place on the Week Day fol- The more restrictive time period of the two Compart- lowing the relevant Valuation Day (the “Calculation ments concerned. Day”).

Frequency of net asset value calculation Payment value date for subscriptions The net asset value will be determined as at each Bank- Within 2 Week Days following the applicable Valuation ing Day (the “Valuation Day”). Day.

However, the Board of Directors reserves the right not to Payment value date for redemptions calculate the net asset value or to calculate a net asset Within 3 Week Days following the applicable Valuation value that cannot be used for trading purposes due to Day. closure of one or more markets in which the Fund is in- Calculation of the net asset value vested and/or which it uses to value a material part of The effect of net asset value corrections, more fully de- the assets. scribed in the section “Swing pricing mechanism /Spread”, will not exceed 1.50%. For further information, please refer to our website www.assetmanagement.pictet.

Calculation Day The calculation and publication of the net asset value as

PICTET – EMERGING MARKETS INDEX

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.60% 0.10% 0.30% IS USD 1 million 0.60% 0.10% 0.30% A *** 0.60% 0.10% 0.30% P − 0.90% 0.10% 0.30% R − 1.35% 0.10% 0.30% Z − 0% 0.10% 0.30% J USD 100 million 0.15% 0.10% 0.30% JS USD 100 million 0.15% 0.10% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. Subscription and redemption may also be made in EUR for P USD, P dy USD and R USD Share Classes and the conversion costs will be charged to the Compartment. *** Please refer to www.assetmanagement.pictet

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50. PICTET – EUROLAND INDEX

Typical investor profile the Benchmark Index, the composition of the portfolio The Compartment is a passively managed investment ve- will not be adjusted, except (if applicable) in an effort to hicle for investors: better reproduce the performance of the Benchmark In- dex. Consequently, the Compartment will not aim to › Who wish to replicate the performance of the MSCI EMU Index. “outperform” the Benchmark Index and will not try to adopt a defensive positioning when markets are declin- Who are willing to bear variations in market › ing or considered overvalued. A decline in the Bench- value and thus have a low aversion to risk. mark Index could thus lead to a corresponding decline Investment policy and objectives in the value of the Compartment’s Shares. The Compartment aims for the full and complete physi- Investors should also be aware that rebalancing the cal replication of the MSCI EMU Index (hereinafter the Benchmark Index may incur transaction fees that will be “Benchmark Index”). It aims to achieve its investment borne by the Compartment and may affect the Compart- objective by investing in a portfolio of transferable secu- ment’s net asset value. rities or other eligible assets comprising all (or, on an exceptional basis, a substantial number) of the compo- In addition to the specific risks linked to the physical nents of the index concerned. replication of the Benchmark Index, investors should be aware that the Compartment is more generally subject to The composition of the Benchmark Index may be ob- market risks (i.e. the risk of the decrease in the value of tained at the address: http://www.msci.com. As a rule, an investment due to changes in market factors such as the Benchmark Index shall be rebalanced four times a exchange rates, interest rates, share prices or volatility). year. The Compartment will invest a minimum of 75% of its The a priori tracking error between the change in the net assets in shares issued by companies that have their value of the underliers of the Compartment and those of registered headquarters in countries that are part of the the Benchmark Index is expected to be below 0.20% European monetary union. p.a. in normal market conditions. The Compartment may, in application of Article 44 of Due to this physical replication, it may be difficult or the 2010 Act, invest up to 20% (and even 35% (for a even impossible to purchase all the components of the single issuer) in exceptional market circumstances, par- Benchmark Index in proportion to their weighting in the ticularly in the case of regulated markets where certain Benchmark Index or to purchase certain components transferable securities are largely dominant) of its net due to their liquidity, the investment limits described in assets in the same issuer in order to replicate the com- the section “Investment Restrictions”, other legal or reg- position of its Benchmark Index. ulatory limits, transaction and other fees incurred by the Compartment, existing differences and the potential The Compartment will hold a diversified portfolio and mismatch between the Compartment and the Bench- could contain convertible bonds. mark Index when the markets are closed. The Compartment will not invest in UCITS and other The Compartment may marginally invest in securities UCIs. that are not part of the benchmark whenever necessary If the manager deems it necessary and in the best inter- (e.g. when the index is rebalanced, in case of corporate est of the Shareholders, and to ensure adequate liquid- action or to manage cashflows), or in exceptional cir- ity, the Compartment may hold liquid instruments such cumstances such as market disruptions or extreme vola- as deposits and money market instruments, among oth- tility. As a consequence, there might be substantial dif- ers. ferences between the composition of the Compartment’s portfolio and that of the Benchmark Index. If the manager deems it necessary and in the best interest of the Shareholders, and to minimise the risk of un- Because the Compartment aims to physically replicate derperforming the Benchmark, the Compartment may

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use financial derivative instruments and techniques for The capital invested may fluctuate up or down, and in- efficient management, within the limits specified in the vestors may not recover the entire value of the capital investment restrictions. initially invested.

The Compartment may enter into Securities Lending Risk management method: Agreements and Repurchase and Reverse Repurchase Commitment approach Agreements in order to increase its capital or its income Managers: or to reduce its costs or risks. PICTET AM Ltd, PICTET AM S.A.

French tax resident investors should be aware that the Reference currency of the Compartment: Compartment is eligible to be held within a "plan EUR d'épargne en actions" ("PEA") in France. The Fund un- Cut-off time for receipt of orders dertakes that the Compartment will invest at least 75% Subscription of its assets on a permanent basis in securities or rights By 12:00 noon on the relevant Valuation Day. eligible to the PEA. Redemption German Investment Tax Act restriction: By 12:00 noon on the relevant Valuation Day. At least 51% of the Compartment’s net assets shall be invested in physical equities (to the exclusion of ADRs, Switch GDRs, derivatives and of any lent securities) that are The more restrictive time period of the two Compart- listed on a stock exchange. ments concerned.

Exposure to total return swaps, securities lending Frequency of net asset value calculation transactions, Reverse Repurchase Agreements and The net asset value will be determined as at each Bank- Repurchase Agreements ing Day (the “Valuation Day”). The expected level of exposure to Securities Lending However, the Board of Directors reserves the right not to Agreements amounts to 25% of the Compartment’s net calculate the net asset value or to calculate a net asset assets. value that cannot be used for trading purposes due to The Compartment does not expect to be exposed to total closure of one or more markets in which the Fund is in- return swaps, Repurchase Agreements and Reverse Re- vested and/or which it uses to value a material part of purchase Agreements. the assets.

Risk factors For further information, please refer to our website The risks listed below are the most relevant risks of the www.assetmanagement.pictet. Compartment. Investors should be aware that other risks Calculation Day may also be relevant to the Compartment. Please refer The calculation and publication of the net asset value as to the section "Risk Considerations" for a full description at a Valuation Day will take place on the Week Day fol- of these risks. lowing the relevant Valuation Day (the “Calculation › Collateral risk Day”). › Equity risk Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation › Volatility risk Day. › Securities Lending Agreement Risk Calculation of the net asset value › Repurchase and reverse repurchase agreement The effect of net asset value corrections described in risk the section “Swing pricing mechanism /Spread” will not › Financial derivative instruments risk exceed 1%.

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PICTET – EUROLAND INDEX

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51. PICTET – SECURITY

Typical investor profile assets in bonds or any other debt security (including The Compartment is an actively managed investment ve- convertible bonds and preference shares), money market hicle for investors: instruments, derivatives and/or structured products whose underliers are, or offer exposure to, bonds or sim- › Who are willing to bear significant variations in market value and thus have a low aversion to ilar debt and interest-rate securities. risk. By analogy, investments in undertakings for collective Investment policy and objectives investment whose main objective is to invest in the as- This Compartment applies a capital growth strategy by sets listed above are also included in the 10% limit. investing primarily in shares or similar securities issued Investments in debt instruments will not exceed 15%. by companies that contribute to providing integrity, health, and freedom, whether it be individual, corporate The Compartment may also invest in structured prod- or political. The Compartment will invest at least two- ucts, such as bonds or other transferable securities thirds of its total assets/total wealth in equities issued whose returns are linked to the performance of an index, by companies operating in this sector. transferable securities or a basket of transferable securities, or an undertaking for collective investment, for ex- The targeted companies will be active, mainly, but not ample. exclusively, in the following areas: internet security; software, telecommunications and computer hardware The Compartment may enter into Securities Lending security; physical safety and health protection; access Agreements and Repurchase and Reverse Repurchase and identification security; traffic security; workplace Agreements in order to increase its capital or its income security and national defence, etc. or to reduce its costs or risks.

This Compartment will hold a diversified portfolio, gen- The Compartment may use derivative techniques and in- erally composed of securities issued by listed compa- struments for efficient management, within the limits nies. These securities may be ordinary or preference specified in the investment restrictions. shares, convertible bonds and to a lesser extent warrants The investment process integrates ESG criteria based on on transferable securities and options. In addition, the proprietary and third-party research to evaluate invest- Compartment may also invest up to 10% of its net as- ment risks and opportunities. When selecting the Com- sets in UCITS and other UCIs, including other Compart- partment’s investments, securities of issuers with low ments of the Fund pursuant to Article 181 of the 2010 ESG characteristics may be purchased and retained in Act. the Compartment’s portfolio.

The Compartment may invest up to 30% of its net as- Reference index: sets in China A Shares through (i) the QFII quota MSCI ACWI (USD). Used for performance objective and granted to an entity of the Pictet Group, (ii) the RQFII performance measurement. quota granted to an entity of the Pictet Group and/or (iii) the Shanghai-Hong Kong Stock Connect programme (iv) The portfolio composition is not constrained relative to the Shenzhen-Hong Kong Stock Connect programme the benchmark, so the similarity of the Compartment’s and/or (v) any similar acceptable securities trading and performance to that of the benchmark may vary. clearing linked programmes or access instruments which may be available to the Compartment in the future. The German Investment Tax Act restriction: Compartment may also use financial derivative instru- At least 51% of the Compartment’s net assets shall be ments on China A Shares. invested in physical equities (to the exclusion of ADRs, The Compartment may also invest in depositary receipts GDRs, derivatives and of any lent securities) that are (such as ADR, GDR, EDR). listed on a stock exchange.

The Compartment will not invest more than 10% of its

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Exposure to total return swaps, securities lending Risk management method: transactions, Reverse Repurchase Agreements and Commitment approach Repurchase Agreements Manager: The expected level of exposure to Securities Lending PICTET AM S.A. Agreements amounts to 5% of the Compartment’s net assets. Reference currency of the Compartment: USD The Compartment does not expect to be exposed to total return swaps, Repurchase Agreements and Reverse Re- Cut-off time for receipt of orders purchase Agreements. Subscription By 1:00 pm on the relevant Valuation Day. Risk factors The risks listed below are the most relevant risks of the Redemption By 1:00 pm on the relevant Valuation Day. Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer Switch to the section "Risk Considerations" for a full description The more restrictive time period of the two Compart- of these risks. ments concerned. › Collateral risk Frequency of net asset value calculation The net asset value will be determined as at each Bank- › Currency risk ing Day (the “Valuation Day”). › Equity risk However, the Board of Directors reserves the right not to › Volatility risk calculate the net asset value or to calculate a net asset › Emerging market risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › Concentration risk vested and/or which it uses to value a material part of › QFII risk the assets.

› RQFII risk For further information, please refer to our website › Stock Connect risk www.assetmanagement.pictet. › Chinese currency exchange rate risk Calculation Day › Securities Lending Agreement Risk The calculation and publication of the net asset value as at a Valuation Day will take place on the relevant Valua- › Repurchase and reverse repurchase agreement tion Day (the “Calculation Day”). risk

› Financial derivative instruments risk Payment value date for subscriptions and redemptions › Structured Finance Securities risk Within 2 Week Days following the applicable Valuation Day. The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital initially invested.

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PICTET – SECURITY

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52. PICTET – CLEAN ENERGY

Typical investor profile The Compartment may also invest in depositary receipts The Compartment is an actively managed investment ve- (such as ADR, GDR, EDR). hicle for investors: The Compartment will not invest more than 10% of its › Who wish to invest in securities of companies assets in bonds or any other debt security (including worldwide that produce clean energy and en- convertible bonds and preference shares), money market courage its use. instruments, derivatives and/or structured products › Who are willing to bear significant variations in whose underliers are, or offer exposure to, bonds or sim- market value and thus have a low aversion to ilar debt and interest-rate securities. risk. By analogy, investments in undertakings for collective Investment policy and objectives investment whose main objective is to invest in the as- This Compartment applies a capital growth strategy by sets listed above are also included in the 10% limit. investing at least two-thirds of its total assets/total wealth in shares issued by companies that contribute to Investments in debt instruments will not exceed 15%. the reduction of carbon emissions (by encouraging the The Compartment may also invest in structured prod- production and use of clean energy, for example). The ucts, such as bonds or other transferable securities investment universe is not limited to a specific geo- whose returns are linked to the performance of an index, graphic region (including emerging countries). transferable securities or a basket of transferable securi- The targeted companies will be in particular, but not ex- ties, or an undertaking for collective investment, for exclusively, companies active in the following domains: ample. cleaner resources and infrastructures; equipment and The Compartment may enter into Securities Lending technologies that reduce carbon emissions; the genera- Agreements and Repurchase and Reverse Repurchase tion, transmission and distribution of cleaner energy; Agreements in order to increase its capital or its income and cleaner and more energy-efficient transportation or to reduce its costs or risks. and fuels. The Compartment may use derivative techniques and in- This Compartment will hold a diversified portfolio com- struments for efficient management, within the limits posed, within the limits of the investment restrictions, specified in the investment restrictions. of securities in listed companies. These securities may This thematic strategy aims to deliver a financial return be ordinary or preference shares, convertible bonds and alongside achieving a positive environmental and/or so- to a lesser extent warrants on transferable securities and cial impact. It invests mainly in companies that contrib- options. In addition, the Compartment may also invest ute to solving environmental and/or social challenges, in up to 10% of its net assets in UCITS and other UCIs, in- particular the transition towards a lower carbon econ- cluding other Compartments of the Fund pursuant to Ar- omy. These companies provide products or services re- ticle 181 of the 2010 Act. lated to, for example but not limited to, the areas listed The Compartment may invest up to 30% of its net as- above. sets in China A Shares through (i) the QFII quota The investment process integrates ESG criteria based on granted to an entity of the Pictet Group, (ii) the RQFII proprietary and third-party research to evaluate invest- quota granted to an entity of the Pictet Group and/or (iii) ment risks and opportunities. When selecting the Com- the Shanghai-Hong Kong Stock Connect programme (iv) partment’s investments, the ESG characteristics of issu- the Shenzhen-Hong Kong Stock Connect programme ers are taken into account to increase or decrease the and/or (v) any similar acceptable securities trading and target weight of securities in the Compartment’s portfo- clearing linked programmes or access instruments which lio. may be available to the Compartment in the future. The Compartment may also use financial derivative instruments on China A Shares.

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Reference index: › Repurchase and reverse repurchase agreement MSCI ACWI (USD). Used for performance objective and risk performance measurement. › Financial derivative instruments risk

The portfolio composition is not constrained relative to › Structured Finance Securities risk the benchmark, so the similarity of the Compartment’s The capital invested may fluctuate up or down, and in- performance to that of the benchmark may vary. vestors may not recover the entire value of the capital German Investment Tax Act restriction: initially invested. At least 51% of the Compartment’s net assets shall be Risk management method: invested in physical equities (to the exclusion of ADRs, Commitment approach GDRs, derivatives and of any lent securities) that are listed on a stock exchange. Manager: PICTET AM S.A. Exposure to total return swaps, securities lending transactions, Reverse Repurchase Agreements and Reference currency of the Compartment: Repurchase Agreements USD The expected level of exposure to Securities Lending Agreements amounts to 15% of the Compartment’s net Cut-off time for receipt of orders assets. Subscription By 1:00 pm on the relevant Valuation Day. The Compartment does not expect to be exposed to total Redemption return swaps, Repurchase Agreements and Reverse Re- By 1:00 pm on the relevant Valuation Day. purchase Agreements. Switch Risk factors The more restrictive time period of the two Compart- The risks listed below are the most relevant risks of the ments concerned. Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer Frequency of net asset value calculation to the section "Risk Considerations" for a full description The net asset value will be determined as at each Bank- of these risks. ing Day (the “Valuation Day”). › Collateral risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › Currency risk value that cannot be used for trading purposes due to › Equity risk closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of › Volatility risk the assets. › Emerging market risk For further information, please refer to our website › Concentration risk www.assetmanagement.pictet. QFII risk › Calculation Day › RQFII risk The calculation and publication of the net asset value as at a Valuation Day will take place on the relevant Valua- › Stock Connect risk tion Day (the “Calculation Day”). › Chinese currency exchange rate risk Payment value date for subscriptions and redemptions › Securities Lending Agreement Risk Within 2 Week Days following the applicable Valuation Day.

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PICTET – CLEAN ENERGY

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53. PICTET – RUSSIAN EQUITIES

Typical investor profile The Compartment may also invest in structured prod- The Compartment is an actively managed investment ve- ucts, such as bonds or other transferable securities hicle for investors: whose returns are linked to the performance of an index, transferable securities or a basket of transferable securi- › Who wish to invest in shares issued by companies with headquarters in Russia and/or whose ties, or an undertaking for collective investment, for ex- main business is conducted in Russia. ample. › Who are willing to bear significant variations in The Compartment may enter into Securities Lending market value and thus have a low aversion to Agreements and Repurchase and Reverse Repurchase risk. Agreements in order to increase its capital or its income Investment policy and objectives or to reduce its costs or risks. The Compartment will invest a minimum of two-thirds of The Compartment may use derivative techniques and in- its total assets/total wealth in equities or any other kind struments for efficient management, within the limits of “equity”-type security issued by companies that are specified in the investment restrictions. headquartered in Russia or that conduct the majority of their activity in Russia. These other “equity”-type secu- The investment process integrates ESG criteria based on rities may be American depositary receipts (ADRs), Eu- proprietary and third-party research to evaluate invest- ropean depositary receipts (EDRs) and Global depositary ment risks and opportunities. When selecting the Com- receipts (GDRs), whose underlying assets are issued by partment’s investments, securities of issuers with low companies domiciled in Russia then traded on regulated ESG characteristics may be purchased and retained in markets outside these countries, mainly in the US and the Compartment’s portfolio. in Europe. Reference index: This Compartment will hold a diversified portfolio, gen- MSCI Russia 10/40 (USD). Used for risk monitoring, performance objective and performance measurement. erally composed of securities issued by listed companies. These securities may be ordinary or preferred The Compartment is designed to offer performance that shares, convertible bonds and, to a lesser extent, war- is likely to be significantly different from that of the rants and options. benchmark. This Compartment may also invest in securities traded on the Moscow Stock Exchange. Exposure to total return swaps, securities lending transactions, Reverse Repurchase Agreements and In addition, the Compartment may also invest up to Repurchase Agreements 10% of its net assets in UCITS and other UCIs, includ- The expected level of exposure to Securities Lending ing other Compartments of the Fund pursuant to Article Agreements amounts to 10% of the Compartment’s net 181 of the 2010 Act. assets.

The Compartment will not invest more than 10% of its The Compartment does not expect to be exposed to total assets in bonds or any other debt security, including return swaps, Repurchase Agreements and Reverse Re- convertible bonds, money market instruments, deriva- purchase Agreements. tives and/or structured products whose underliers are, or Risk factors offer exposure to, bonds or similar debt and interest-rate The risks listed below are the most relevant risks of the securities. Compartment. Investors should be aware that other risks By analogy, investments in undertakings for collective may also be relevant to the Compartment. Please refer investment whose main objective is to invest in the as- to the section "Risk Considerations" for a full description sets listed above are also included in the 10% limit. of these risks. Investments in debt instruments will not exceed 15%. › Collateral risk

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› Settlement risk Redemption By 1:00 pm on the relevant Valuation Day. › Asset liquidity risk Switch › Investment restriction risk The more restrictive time period of the two Compart- › Currency risk ments concerned.

› Equity risk Frequency of net asset value calculation › Volatility risk The net asset value will be determined as at each Bank- ing Day (the “Valuation Day”). › Emerging market risk However, the Board of Directors reserves the right not to › Concentration risk calculate the net asset value or to calculate a net asset › Political risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › Risk of investing in Russia vested and/or which it uses to value a material part of › Securities Lending Agreement Risk the assets.

› Repurchase and reverse repurchase agreement For further information, please refer to our website risk www.assetmanagement.pictet. › Financial derivative instruments risk Calculation Day › Structured Finance Securities risk The calculation and publication of the net asset value as › Depositary receipts risk at a Valuation Day will take place on the relevant Valua- tion Day (the “Calculation Day”). The capital invested may fluctuate up or down, and investors may not recover the entire value of the capital Payment value date for subscriptions and redemptions Within 3 Week Days following the applicable Valuation initially invested. Day. Risk management method:

Commitment approach

Manager: PICTET AM Ltd

Reference currency of the Compartment: USD

Cut-off time for receipt of orders Subscription By 1:00 pm on the relevant Valuation Day.

PICTET – RUSSIAN EQUITIES

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1.90% 0.80% 0.30% A *** 1.90% 0.80% 0.30% P − 2.40% 0.80% 0.30% R − 2.90% 0.80% 0.30% Z − 0% 0.80% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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54. PICTET – TIMBER

Typical investor profile The Compartment will not invest more than 10% of its The Compartment is an actively managed investment ve- assets in bonds or any other debt security (including hicle for investors: convertible bonds and preference shares), money market instruments, derivatives and/or structured products › Who wish to invest in shares of companies worldwide active in the forestry value chain. whose underliers are, or offer exposure to, bonds or similar debt and interest-rate securities. › Who are willing to bear significant variations in market value and thus have a low aversion to By analogy, investments in undertakings for collective risk. investment whose main objective is to invest in the assets listed above are also included in the 10% limit. Investment policy and objectives This Compartment applies a strategy for capital growth Investments in debt instruments will not exceed 15%. by investing at least two-thirds of its total assets / total The Compartment may also invest in structured prod- wealth in shares or any other securities related to shares ucts, such as bonds or other transferable securities issued by companies active in the financing, planting, whose returns are linked to the performance of an index, and management of forests and wooded areas and/or in transferable securities or a basket of transferable securi- the processing, production and distribution of wood for ties, or an undertaking for collective investment, for ex- construction and other services and products derived ample. from wood contained in the forestry value chain. The Compartment may enter into Securities Lending This Compartment will hold a diversified portfolio com- Agreements and Repurchase and Reverse Repurchase posed, within the limits of the investment restrictions, Agreements in order to increase its capital or its income of securities in listed companies. These securities may or to reduce its costs or risks. be ordinary or preferred shares, convertible bonds and, to a lesser extent, warrants and options. The Compartment may use derivative techniques and instruments for efficient management, within the limits The investment universe is not limited to a specific geo- specified in the investment restrictions. graphic region (including emerging countries). This thematic strategy aims to deliver a financial return In addition, the Compartment may also invest up to alongside achieving a positive environmental impact. It 10% of its net assets in UCITS and other UCIs, includ- invests mainly in companies that contribute to solving ing other Compartments of the Fund pursuant to Article environmental challenges by providing products or ser- 181 of the 2010 Act. vices related to, for example but not limited to, sustain- The Compartment may invest up to 30% of its net as- able forestry, biodegradable materials and other areas sets in China A Shares through (i) the QFII quota listed above. granted to an entity of the Pictet Group, (ii) the RQFII The investment process integrates ESG criteria based on quota granted to an entity of the Pictet Group and/or (iii) proprietary and third-party research to evaluate invest- the Shanghai-Hong Kong Stock Connect programme (iv) ment risks and opportunities. When selecting the Com- the Shenzhen-Hong Kong Stock Connect programme partment’s investments, the ESG characteristics of issu- and/or (v) any similar acceptable securities trading and ers are taken into account to increase or decrease the clearing linked programmes or access instruments which target weight of securities in the Compartment’s portfo- may be available to the Compartment in the future. The lio. Compartment may also use financial derivative instruments on China A Shares. Reference index: MSCI ACWI (USD). Used for performance objective and The Compartment may also invest in depositary receipts performance measurement. (such as ADR, GDR, EDR) and in real estate investments trusts (REITs).

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The portfolio composition is not constrained relative to › Structured Finance Securities risk the benchmark, so the similarity of the Compartment’s performance to that of the benchmark may vary. › Real Estate Investment Trusts (REITs) risk German Investment Tax Act restriction: The capital invested may fluctuate up or down, and in- At least 51% of the Compartment’s net assets shall be vestors may not recover the entire value of the capital invested in physical equities (to the exclusion of ADRs, initially invested. GDRs, derivatives and of any lent securities) that are Risk management method: listed on a stock exchange. Commitment approach Exposure to total return swaps, securities lending Manager: transactions, Reverse Repurchase Agreements and PICTET AM S.A. Repurchase Agreements The expected level of exposure to Securities Lending Reference currency of the Compartment: Agreements amounts to 10% of the Compartment’s net USD assets. Cut-off time for receipt of orders The Compartment does not expect to be exposed to total Subscription return swaps, Repurchase Agreements and Reverse Re- By 1:00 pm on the relevant Valuation Day. purchase Agreements. Redemption Risk factors By 1:00 pm on the relevant Valuation Day. The risks listed below are the most relevant risks of the Switch Compartment. Investors should be aware that other risks The more restrictive time period of the two Compart- may also be relevant to the Compartment. Please refer ments concerned. to the section "Risk Considerations" for a full description Frequency of net asset value calculation of these risks. The net asset value will be determined as at each Bank- › Collateral risk ing Day (the “Valuation Day”).

› Currency risk However, the Board of Directors reserves the right not to › Equity risk calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to › Volatility risk closure of one or more markets in which the Fund is in- › Emerging market risk vested and/or which it uses to value a material part of the assets. › Concentration risk For further information, please refer to our website › QFII risk www.assetmanagement.pictet. › RQFII risk Calculation Day › Stock Connect risk The calculation and publication of the net asset value as › Chinese currency exchange rate risk at a Valuation Day will take place on the relevant Valua- tion Day (the “Calculation Day”). › Securities Lending Agreement Risk Payment value date for subscriptions and redemptions › Repurchase and reverse repurchase agreement Within 2 Week Days following the applicable Valuation risk Day. › Financial derivative instruments risk

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PICTET – TIMBER

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55. PICTET – NUTRITION

Typical investor profile 10% of its net assets in UCITS and other UCIs, includ- The Compartment is an actively managed investment ve- ing other Compartments of the Fund pursuant to Article hicle for investors: 181 of the 2010 Act.

› Who wish to invest in the securities of compa- The Compartment will not invest more than 10% of its nies that contribute to and/or profit from the assets in bonds or any other debt security (including value chain of the nutrition sector. convertible bonds and preference shares), money market › Who are willing to bear significant variations in instruments, derivatives and/or structured products market value and thus have a low aversion to whose underliers are, or offer exposure to, bonds or sim- risk. ilar debt and interest-rate securities.

Investment policy and objectives By analogy, investments in undertakings for collective This Compartment applies a strategy for capital growth investment whose main objective is to invest in the as- by investing primarily in shares issued by companies sets listed above are also included in the 10% limit. contributing to and/or profiting from the value chain of the nutrition sector. Investments in debt instruments will not exceed 15%.

The Compartment’s investment universe is not limited to Under exceptional circumstances, if the manager con- a specific geographic region (including emerging coun- siders this to be in the best interest of the Shareholders, tries). the Compartment may hold up to 100% of its net assets in liquidities as amongst others cash deposits, money Within this value chain, the primarily targeted compa- market funds (within the above-mentioned 10% limit) nies will be those which improve quality, access to, and and money market instruments. sustainability of food production. The Compartment may also invest in structured prod- The risks will be minimised in a general environment of ucts, such as bonds or other transferable securities geographic diversification. whose returns are linked to the performance of an index, This Compartment will hold a diversified portfolio com- transferable securities or a basket of transferable securi- posed, within the limits of the investment restrictions, ties, or an undertaking for collective investment, for ex- of securities in listed companies. These securities may ample. be ordinary or preferred shares and, to a lesser extent, The Compartment may enter into Securities Lending warrants and options. Agreements and Repurchase and Reverse Repurchase The Compartment may invest up to 30% of its net as- Agreements in order to increase its capital or its income sets in China A Shares through (i) the QFII quota or to reduce its costs or risks. granted to an entity of the Pictet Group, (ii) the RQFII The Compartment may use derivative techniques and in- quota granted to an entity of the Pictet Group and/or (iii) struments for efficient management, within the limits the Shanghai-Hong Kong Stock Connect programme (iv) specified in the investment restrictions. the Shenzhen-Hong Kong Stock Connect programme and/or (v) any similar acceptable securities trading and This thematic strategy aims to deliver a financial return clearing linked programmes or access instruments which alongside achieving a positive social and/or environmen- may be available to the Compartment in the future. The tal impact. It invests mainly in companies that contrib- Compartment may also use financial derivative instru- ute to solving social and/or environmental challenges by ments on China A Shares. providing solutions related to, for example but not limited to, the areas listed above. The Compartment may also invest in depositary receipts (such as ADR, GDR, EDR). The investment process integrates ESG criteria based on proprietary and third-party research to evaluate invest- In addition, the Compartment may also invest up to ment risks and opportunities. When selecting the

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Compartment’s investments, the ESG characteristics of › Repurchase and reverse repurchase agreement issuers are taken into account to increase or decrease risk the target weight of securities in the Compartment’s › Financial derivative instruments risk portfolio. › Structured Finance Securities risk German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall be The capital invested may fluctuate up or down, and in- invested in physical equities (to the exclusion of ADRs, vestors may not recover the entire value of the capital GDRs, derivatives and of any lent securities) that are initially invested. listed on a stock exchange. Risk management method: Commitment approach Reference index: MSCI ACWI (EUR). Used for performance objective and performance measurement. Manager: PICTET AM S.A. The portfolio composition is not constrained relative to the benchmark, so the similarity of the Compartment’s Reference currency of the Compartment: performance to that of the benchmark may vary. EUR

Cut-off time for receipt of orders Exposure to total return swaps, securities lending transactions, Reverse Repurchase Agreements and Subscription By 1:00 pm on the relevant Valuation Day. Repurchase Agreements The expected level of exposure to Securities Lending Redemption Agreements amounts to 10% of the Compartment’s net By 1:00 pm on the relevant Valuation Day. assets. Switch The Compartment does not expect to be exposed to total The more restrictive time period of the two Compart- return swaps, Repurchase Agreements and Reverse Re- ments concerned. purchase Agreements. Frequency of net asset value calculation Risk factors The net asset value will be determined as at each Bank- The risks listed below are the most relevant risks of the ing Day (the “Valuation Day”). Compartment. Investors should be aware that other risks However, the Board of Directors reserves the right not to may also be relevant to the Compartment. Please refer calculate the net asset value or to calculate a net asset to the section "Risk Considerations" for a full description value that cannot be used for trading purposes due to of these risks. closure of one or more markets in which the Fund is in- › Collateral risk vested and/or which it uses to value a material part of the assets. › Currency risk For further information, please refer to our website › Equity risk www.assetmanagement.pictet. › Volatility risk Calculation Day › Emerging market risk The calculation and publication of the net asset value as › Concentration risk at a Valuation Day will take place on the relevant Valua- tion Day (the “Calculation Day”). › QFII risk Payment value date for subscriptions and redemptions RQFII risk › Within 2 Week Days following the applicable Valuation › Stock Connect risk Day. › Chinese currency exchange rate risk › Securities Lending Agreement Risk

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PICTET – NUTRITION

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56. PICTET – GLOBAL MEGATREND SELECTION

Typical investor profile including other Compartments of the Fund pursuant to The Compartment is an actively managed investment ve- Article 181 of the 2010 Act. hicle for investors: The Compartment will not invest more than 10% of its › Who wish to invest in securities exposed to assets in bonds or any other debt security (including global megatrends; convertible bonds and preference shares), money market › Who are willing to bear significant variations in instruments, derivatives and/or structured products market value and thus have a low aversion to whose underliers are, or offer exposure to, bonds or sim- risk. ilar debt and interest-rate securities.

Investment policy and objectives By analogy, investments in undertakings for collective The Compartment will apply a strategy for capital growth investment whose main objective is to invest in the as- by investing at least two-thirds of its total assets/total sets listed above are also included in the 10% limit. wealth in equities or in any other security linked to equi- Investments in debt instruments will not exceed 15%. ties, issued by companies throughout the world (including in emerging countries). The Compartment may also invest in structured products, such as bonds or other transferable securities The Compartment will invest primarily in securities that whose returns are linked to the performance of an index, may benefit from global megatrends, i.e. long-term mar- transferable securities or a basket of transferable securi- ket trends resulting from sustainable, secular changes in ties, or an undertaking for collective investment, for ex- economic and social factors such as demographics, life- ample. style, regulations and the environment. The Compartment may enter into Securities Lending The Compartment may invest up to 30% of its net as- Agreements and Repurchase and Reverse Repurchase sets in China A Shares through (i) the QFII quota Agreements in order to increase its capital or its income granted to an entity of the Pictet Group, (ii) the RQFII or to reduce its costs or risks. quota granted to an entity of the Pictet Group and/or (iii) the Shanghai-Hong Kong Stock Connect programme (iv) The Compartment may use derivative techniques and in- the Shenzhen-Hong Kong Stock Connect programme struments for efficient management, within the limits and/or (v) any similar acceptable securities trading and specified in the investment restrictions. clearing linked programmes or access instruments which The investment process integrates ESG criteria based on may be available to the Compartment in the future. The proprietary and third-party research to evaluate invest- Compartment may also use financial derivative instrument risks and opportunities. When selecting the Com- ments on China A Shares. partment’s investments, securities of issuers with low The Compartment may also invest in depositary receipts ESG characteristics may be purchased and retained in (such as ADR, GDR, EDR) and for up to 10% of its net the Compartment’s portfolio. assets in in real estate investments trusts (REITs). Reference index: The risks will be minimised in a general environment of MSCI ACWI (USD). Used for performance objective and geographic diversification. performance measurement.

This Compartment will hold a diversified portfolio com- The portfolio composition is not constrained relative to posed, within the limits of the investment restrictions, the benchmark, so the similarity of the Compartment’s of securities in listed companies. These securities may performance to that of the benchmark may vary. be ordinary or preferred shares and, to a lesser extent, warrants and options. German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall be In addition, the Compartment may also invest up to invested in physical equities (to the exclusion of ADRs, 10% of its net assets in UCITS and other UCIs, GDRs, derivatives and of any lent securities) that are

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listed on a stock exchange. return swaps, Repurchase Agreements and Reverse Re- purchase Agreements. Exposure to total return swaps, securities lending transactions, Reverse Repurchase Agreements and Repur- Risk factors chase Agreements The risks listed below are the most relevant risks of the The expected level of exposure to Securities Lending Compartment. Investors should be aware that other risks Agreements amounts to 5% of the Compartment’s net may also be relevant to the Compartment. Please refer assets. to the section "Risk Considerations" for a full description The Compartment does not expect to be exposed to total of these risks. › Collateral risk Redemption By 11:00 am on the relevant Valuation Day. › Currency risk Switch › Equity risk The more restrictive time period of the two Compart- › Volatility risk ments concerned.

› Emerging market risk Frequency of net asset value calculation › QFII risk The net asset value will be determined as at each Bank- ing Day (the “Valuation Day”). › RQFII risk However, the Board of Directors reserves the right not to › Stock Connect risk calculate the net asset value or to calculate a net asset › Chinese currency exchange rate risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › Securities Lending Agreement Risk vested and/or which it uses to value a material part of › Repurchase and reverse repurchase agreement the assets. risk For further information, please refer to our website › Financial derivative instruments risk www.assetmanagement.pictet. › Structured Finance Securities risk Calculation Day The capital invested may fluctuate up or down, and in- The calculation and publication of the net asset value as vestors may not recover the entire value of the capital at a Valuation Day will take place on the relevant Valua- initially invested. tion Day (the “Calculation Day”).

Risk management method: Payment value date for subscriptions and redemptions Commitment approach Within 2 Week Days following the applicable Valuation Day. Manager: PICTET AM S.A.

Reference currency of the Compartment: USD

Cut-off time for receipt of orders Subscription By 11:00 am on the relevant Valuation Day.

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PICTET – GLOBAL MEGATREND SELECTION

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57. PICTET – GLOBAL ENVIRONMENTAL OPPORTUNITIES

Typical investor profile Under exceptional circumstances, if the manager con- The Compartment is an actively managed investment ve- siders this to be in the best interest of the Shareholders, hicle for investors: the Compartment may hold up to 100% of its net assets in liquidities as amongst others cash deposits, money › Who wish to invest in the securities of companies worldwide that are active throughout the market funds (within the above-mentioned 10% limit) environmental value chain. and money market instruments. › Who are willing to bear significant fluctuations Investments in debt instruments will not exceed 15%. in market value and thus have a low aversion to The Compartment may also invest in structured prod- risk. ucts, such as in particular credit-linked notes, certifi- Investment policy and objectives cates or any other transferable security whose returns The Compartment applies a capital growth strategy, by are linked to, among others, an index that adheres to investing principally in equities, or in any other transfer- the procedures stipulated in Article 9 of the Luxem- able security linked to or similar to equities (including bourg regulations of 8 February 2008 (including indexes structured products as described below), issued by com- on commodities, precious metals, volatility, etc.), cur- panies throughout the world (including emerging coun- rencies, interest rates, transferable securities, a basket tries). of transferable securities, or an undertaking for collec- It will invest mainly in securities issued by companies tive investment, in compliance with the Luxembourg active throughout the environmental value chain, for ex- regulations of 8 February 2008. ample in agriculture, forestry, clean energy and water. The Compartment may enter into Securities Lending The Compartment may invest up to 30% of its net as- Agreements and Repurchase and Reverse Repurchase sets in China A Shares through (i) the QFII quota Agreements in order to increase its capital or its income granted to an entity of the Pictet Group, (ii) the RQFII or to reduce its costs or risks. quota granted to an entity of the Pictet Group and/or (iii) The Compartment may use derivative techniques and in- the Shanghai-Hong Kong Stock Connect programme (iv) struments for efficient management, within the limits the Shenzhen-Hong Kong Stock Connect programme specified in the investment restrictions. and/or (v) any similar acceptable securities trading and clearing linked programmes or access instruments which This thematic strategy aims to deliver a financial return may be available to the Compartment in the future. The alongside achieving a positive environmental and/or so- Compartment may also use financial derivative instru- cial impact. It invests mainly in companies with a low ments on China A Shares. environmental footprint that contributes to solving environmental and/or social challenges by providing solu- The Compartment may also invest in depositary receipts tions related to, for example but not limited to, energy (such as ADR, GDR, EDR). efficiency, pollution control, water supply & technology, Investments in unlisted securities and in listed securi- waste management & recycling, sustainable agriculture ties in Russia other than on the Moscow Stock Exchange & forestry or dematerialized economy will not exceed 10% of the Compartment’s net assets. The investment process integrates ESG criteria based on Risks will be minimised by diversified geographic distri- proprietary and third-party research to evaluate invest- bution of the portfolio. ment risks and opportunities. When selecting the Com- partment’s investments, the ESG characteristics of issu- In addition, the Compartment may also invest up to ers are taken into account to increase or decrease the 10% of its net assets in UCITS and other UCIs, includ- target weight of securities in the Compartment’s portfo- ing other Compartments of the Fund pursuant to Article lio 181 of the 2010 Act.

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Reference index: › Repurchase and reverse repurchase agreement MSCI ACWI (EUR). Used for performance objective and risk performance measurement. › Financial derivative instruments risk

› Emerging market risk For further information, please refer to our website › QFII risk www.assetmanagement.pictet. › RQFII risk Calculation Day The calculation and publication of the net asset value as › Stock Connect risk at a Valuation Day will take place on the relevant Valua- › Chinese currency exchange rate risk tion Day (the “Calculation Day”).

› Securities Lending Agreement Risk Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation Day.

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PICTET – GLOBAL ENVIRONMENTAL OPPORTUNITIES

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 1.20% 0.45% 0.30% A *** 1.20% 0.45% 0.30% P − 2.40% 0.45% 0.30% R − 2.90% 0.45% 0.30% Z − 0% 0.45% 0.30% J EUR 100 million 1.00% 0.45% 0.30% D1 EUR 100 million 1.20% 0.45% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. Subscription and redemption may also be made in USD for P EUR, P dy EUR, I EUR and R EUR Share Classes and the conversion costs will be charged to the Compartment. *** Please refer to www.assetmanagement.pictet

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58. PICTET – SMARTCITY

Typical investor profile undertakings for collective investment (UCITS and other The Compartment is an actively managed investment ve- UCIs), cash. hicle for investors: The Compartment may also invest up to 49% of its net › Who wish to invest in equities of international assets in closed-ended REITs. companies that contribute to and/or profit from Investments in unlisted securities and in listed securi- the global trend towards urbanisation. ties in Russia other than on the Moscow Stock Exchange › Who are willing to bear significant fluctuations will not exceed 10% of the Compartment’s net assets. in market value and thus have a low aversion In addition, the Compartment may also invest up to to risk. 10% of its net assets in UCITS and other UCIs, includ- Investment policy and objectives ing other Compartments of the Fund pursuant to Article The Compartment aims to achieve capital growth by in- 181 of the 2010 Act. vesting mainly in equities and equity related securities (such as convertible bonds, closed ended real estate in- The Compartment will not invest more than 10% of its vestments trusts (REITs), ADR, GDR) issued by compa- net assets in debt securities of any type (including con- nies that contribute to and/or profit from the trend to- vertible bonds), and money market instruments directly wards urbanisation. These investments will be made in or indirectly (via financial derivative instruments, struc- compliance with article 41 of the 2010 Act. tured products, UCITS and other UCIs). The targeted companies will be active mainly, but not exclusively, in the following areas: mobility and trans- Under exceptional circumstances, if the manager con- portation, infrastructure, real estate, sustainable re- siders this to be in the best interest of the Shareholders, sources management (such as energy efficiency or waste the Compartment may hold up to 100% of its net assets management) as well as enabling technologies and ser- in liquidities as amongst others cash deposits, money vices supporting the development of smart and sustaina- market funds (within the above-mentioned 10% limit) ble cities. and money market instruments. The Compartment may invest up to 30% of its net as- The Compartment may also invest in structured prod- sets in China A Shares through (i) the QFII quota ucts, such as bonds and other transferable securities granted to an entity of the Pictet Group, (ii) the RQFII whose returns are linked for example, to the perfor- quota granted to an entity of the Pictet Group and/or (iii) mance of an index the Shanghai-Hong Kong Stock Connect programme (iv) in accordance with Article 9 of the Luxembourg regula- the Shenzhen-Hong Kong Stock Connect programme tions of 8 February 2008, transferable securities or a and/or (v) any similar acceptable securities trading and basket of transferable securities, or an undertaking for clearing linked programmes or access instruments which collective investment in accordance with the Luxem- may be available to the Compartment in the future. The bourg regulations of 8 February 2008. Compartment may also use financial derivative instru- The Compartment may enter into Securities Lending ments on China A Shares. Agreements and Repurchase and Reverse Repurchase The Compartment may invest in any country (including Agreements in order to increase its capital or its income emerging countries), in any economic sector and in any or to reduce its costs or risks. currency. However, depending on market conditions, the The Compartment may use derivative techniques and in- investments may be focused on one country or on a limited number of countries and/or one economic activity struments for efficient management, within the limits sector and/or one currency. specified in the investment restrictions. On an ancillary basis, the Compartment may invest in This thematic strategy aims to deliver a financial return any other type of eligible assets, such as equities other alongside achieving a positive social and/or environmen- than those above-mentioned (including up to 20% in tal impact. It invests mainly in companies that contrib- 144A equities), debt securities (including money market ute to solving social and/or environmental challenges by instruments), structured products (as described below), providing products or services related to, for example

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but not limited to, the areas listed above. › RQFII risk The investment process integrates ESG criteria based on › Stock Connect risk proprietary and third-party research to evaluate invest- › Chinese currency exchange risk ment risks and opportunities. When selecting the Com- partment’s investments, the ESG characteristics of issu- › Securities Lending Agreement Risk ers are taken into account to increase or decrease the › Repurchase and reverse repurchase agreement target weight of securities in the Compartment’s portfo- risk lio. › Financial derivative instruments risk Reference index: › Real estate investment trust risk MSCI ACWI (EUR). Used for performance objective and performance measurement. › Structured Finance Securities risk › Leverage risk The portfolio composition is not constrained relative to the benchmark, so the similarity of the Compartment’s The capital invested may fluctuate up or down, and in- performance to that of the benchmark may vary. vestors may not recover the entire value of the capital

initially invested. German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall be Risk management method: invested in physical equities (to the exclusion of ADRs, Commitment approach GDRs, derivatives and of any lent securities) that are Manager: listed on a stock exchange. PICTET AM S.A.

Exposure to total return swaps, securities lending Reference currency of the Compartment: transactions, Reverse Repurchase Agreements and EUR Repurchase Agreements The expected level of exposure to Securities Lending Cut-off time for receipt of orders Agreements amounts to 10% of the Compartment’s net Subscription By 1:00 pm on the relevant Valuation Day. assets. Redemption The Compartment does not expect to be exposed to total By 1:00 pm on the relevant Valuation Day. return swaps, Repurchase Agreements and Reverse Re- purchase Agreements. Switch The more restrictive time period of the two Compart- Risk factors ments concerned. The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks Frequency of net asset value calculation may also be relevant to the Compartment. Please refer The net asset value will be determined as at each Bank- to the section "Risk Considerations" for a full description ing Day (the “Valuation Day”). of these risks. However, the Board of Directors reserves the right not to › Collateral risk calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to Currency risk › closure of one or more markets in which the Fund is in- › Equity risk vested and/or which it uses to value a material part of the assets. › Volatility risk › Emerging market risk For further information, please refer to our website www.assetmanagement.pictet. › Concentration risk Calculation Day › Risk of investing in the PRC The calculation and publication of the net asset value as › QFII risk at a Valuation Day will take place on the relevant

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Valuation Day (the “Calculation Day”). Day.

Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation

PICTET – SMARTCITY

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 1.20% 0.45% 0.30% A *** 1.20% 0.45% 0.30% P − 2.40% 0.45% 0.30% R − 2.90% 0.45% 0.30% Z − 0% 0.45% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. Subscription and redemption may also be made in USD for all Share Classes denominated in EUR and the conversion costs will be charged to the Compartment. *** Please refer to www.assetmanagement.pictet

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59. PICTET – CHINA INDEX

Typical investor profile due to their liquidity, the investment limits described in The Compartment is a passively managed investment ve- the section “Investment Restrictions”, other legal or reg- hicle for investors: ulatory limits, transaction and other fees incurred by the Compartment, existing differences and the potential › Who wish to replicate the performance of the MSCI China Index. mismatch between the Compartment and the Bench- mark Index when the markets are closed. › Who are willing to bear significant variations in market value and thus have a low aversion to The Compartment may marginally invest in securities risk. that are not part of the benchmark whenever necessary (e.g. when the index is rebalanced, in case of corporate Investment policy and objectives The Compartment aims for the full and complete physi- action or to manage cashflows), or in exceptional cir- cal replication of the MSCI China Index (hereinafter the cumstances such as market disruptions or extreme vola- “Benchmark Index”). It aims to achieve its investment tility. As a consequence, there might be substantial dif- objective by investing in a portfolio of transferable secu- ferences between the composition of the Compartment’s rities or other eligible assets comprising all (or, on an portfolio and that of the Benchmark Index. exceptional basis, a substantial number) of the compo- Because the Compartment aims to physically replicate nents of the index concerned. the Benchmark Index, the composition of the portfolio The Compartment may invest in China A Shares through will not be adjusted, except (if applicable) in an effort to (i) the QFII quota granted to an entity of the Pictet better reproduce the performance of the Benchmark In- Group (subject to a maximum of 35% of its net assets) , dex. Consequently, the Compartment will not aim to (ii) the RQFII quota granted to an entity of the Pictet “outperform” the Benchmark Index and will not try to Group and/or (iii) the Shanghai-Hong Kong Stock Con- adopt a defensive positioning when markets are declin- nect programme and/or (iv) the Shenzhen-Hong Kong ing or considered overvalued. A decline in the Bench- Stock Connect programme and/or (v) any similar ac- mark Index could thus lead to a corresponding decline ceptable securities trading and clearing linked pro- in the value of the Compartment’s Shares. grammes or access instruments which may be available Investors should also be aware that rebalancing the to the Compartment in the future. The Compartment Benchmark Index may incur transaction fees that will be may also use financial derivative instruments on China A borne by the Compartment and may affect the Compart- Shares. ment’s net asset value.

The composition of the Benchmark Index may be ob- In addition to the specific risks linked to the physical tained at the address: http://www.msci.com. As a rule, replication of the Benchmark Index, investors should be the Benchmark Index shall be rebalanced four times a aware that the Compartment is more generally subject to year. market risks (i.e. the risk of the decrease in the value of The a priori tracking error between the change in the an investment due to changes in market factors such as value of the underliers of the Compartment and those of exchange rates, interest rates, share prices or volatility). the Benchmark Index is expected to be below 0.30% The Compartment may, in application of Article 44 of p.a. in normal market conditions. the 2010 Act, invest up to 20% (and even 35% (for a Due to this physical replication, it may be difficult or single issuer) in exceptional market circumstances, par- even impossible to purchase all the components of the ticularly in the case of regulated markets where certain Benchmark Index in proportion to their weighting in the transferable securities are largely dominant) of its net Benchmark Index or to purchase certain components assets in the same issuer in order to replicate the composition of its Benchmark Index.

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The Compartment will hold a diversified portfolio and › Equity risk could contain convertible bonds. › Volatility risk The Compartment will not invest in UCITS and other › Emerging market risk UCIs. › Concentration risk If the manager deems it necessary and in the best interest of the Shareholders, and to ensure adequate liquid- › Political risk ity, the Compartment may hold liquid instruments such › QFII risk as deposits and money market instruments, among oth- › RQFII risk ers. › Stock Connect risk If the manager deems it necessary and in the best interest of the Shareholders, and to minimise the risk of un- › Chinese currency exchange rate risk derperforming the Benchmark, the Compartment may › Securities Lending Agreement Risk use financial derivative instruments and techniques for › Repurchase and reverse repurchase agreement efficient management, within the limits specified in the risk investment restrictions. › Financial derivative instruments risk The Compartment may enter into Securities Lending Agreements and Repurchase and Reverse Repurchase The capital invested may fluctuate up or down, and in- Agreements in order to increase its capital or its income vestors may not recover the entire value of the capital or to reduce its costs or risks. initially invested.

German Investment Tax Act restriction: Risk management method: At least 51% of the Compartment’s net assets shall be Commitment approach invested in physical equities (to the exclusion of ADRs, Managers: GDRs, derivatives and of any lent securities) that are PICTET AM Ltd, PICTET AM S.A. listed on a stock exchange. Reference currency of the Compartment: Exposure to total return swaps, securities lending USD transactions, Reverse Repurchase Agreements and Cut-off time for receipt of orders Repurchase Agreements Subscription The expected level of exposure to Securities Lending By 12:00 noon on the Banking Day preceding the rele- Agreements amounts to 20% of the Compartment’s net vant Valuation Day. assets. Redemption The Compartment does not expect to be exposed to total By 12:00 noon on the Banking Day preceding the rele- return swaps, Repurchase Agreements and Reverse Re- vant Valuation Day. purchase Agreements. Switch Risk factors The more restrictive time period of the two Compart- The risks listed below are the most relevant risks of the ments concerned. Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer Frequency of net asset value calculation to the section "Risk Considerations" for a full description The net asset value will be determined as at each Bank- of these risks. ing Day (the “Valuation Day”). › Collateral risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › Asset liquidity risk value that cannot be used for trading purposes due to › Investment restriction risk closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of › Currency risk

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the assets. Day.

For further information, please refer to our website Calculation of the net asset value www.assetmanagement.pictet. The effect of net asset value corrections, more fully

described in the section “Swing pricing mechanism Calculation Day Spread”, will not exceed 1%. The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day following the relevant Valuation Day (the “Calculation

Day”).

Payment value date for subscriptions and redemptions Within 2 Week Days following the applicable Valuation

PICTET – CHINA INDEX

Type Initial min. Fees (max %) * of Management Service** Depositary Bank Share I USD 1 million 0.45% 0.10% 0.30% IS USD 1 million 0.45% 0.10% 0.30% A *** 0.45% 0.10% 0.30% P − 0.60% 0.10% 0.30% R − 1.20% 0.10% 0.30% Z − 0% 0.10% 0.30% J USD 100 million 0.15% 0.10% 0.30% JS USD 100 million 0.15% 0.10% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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60. PICTET – INDIA INDEX

Typical investor profile the Benchmark Index, the composition of the portfolio The Compartment is a passively managed investment ve- will not be adjusted, except (if applicable) in an effort to hicle for investors: better reproduce the performance of the Benchmark In- dex. Consequently, the Compartment will not aim to › Who wish to replicate the performance of the MSCI India Index. “outperform” the Benchmark Index and will not try to adopt a defensive positioning when markets are declin- Who are willing to bear significant variations in › ing or considered overvalued. A decline in the Bench- market value and thus have a low aversion to mark Index could thus lead to a corresponding decline risk. in the value of the Compartment’s Shares. Investment policy and objectives The Compartment aims for the full and complete physi- Investors should also be aware that rebalancing the cal replication of the MSCI India Index (hereinafter the Benchmark Index may incur transaction fees that will be “Benchmark Index”). It aims to achieve its investment borne by the Compartment and may affect the Compart- objective by investing in a portfolio of transferable secu- ment’s net asset value. rities or other eligible assets comprising all (or, on an In addition to the specific risks linked to the physical exceptional basis, a substantial number) of the compo- replication of the Benchmark Index, investors should be nents of the index concerned. aware that the Compartment is more generally subject to The composition of the Benchmark Index may be ob- market risks (i.e. the risk of the decrease in the value of tained at the address: http://www.msci.com. As a rule, an investment due to changes in market factors such as the Benchmark Index shall be rebalanced four times a exchange rates, interest rates, share prices or volatility). year. The Compartment may, in application of Article 44 of The a priori tracking error between the change in the the 2010 Act, invest up to 20% (and even 35% (for a value of the underliers of the Compartment and those of single issuer) in exceptional market circumstances, par- the Benchmark Index is expected to be below 0.30% ticularly in the case of regulated markets where certain p.a. in normal market conditions. transferable securities are largely dominant) of its net assets in the same issuer in order to replicate the com- Due to this physical replication, it may be difficult or position of its Benchmark Index. even impossible to purchase all the components of the Benchmark Index in proportion to their weighting in the The Compartment will hold a diversified portfolio and Benchmark Index or to purchase certain components could contain convertible bonds. due to their liquidity, the investment limits described in The Compartment will not invest in UCITS and other the section “Investment Restrictions”, other legal or reg- UCIs. ulatory limits, transaction and other fees incurred by the The Compartment may conduct non-deliverable forward Compartment, existing differences and the potential transactions. A Non-Deliverable Forward is a bilateral fi- mismatch between the Compartment and the Bench- nancial contract on an exchange rate between a strong mark Index when the markets are closed. currency and an emerging currency for future value The Compartment may marginally invest in securities date. At maturity, there will be no delivery of the emerg- that are not part of the benchmark whenever necessary ing currency; instead there is a cash settlement of the (e.g. when the index is rebalanced, in case of corporate contract’s financial result in the strong currency. action or to manage cashflows), or in exceptional cir- The International Swaps and Derivatives Association cumstances such as market disruptions or extreme vola- (ISDA) has published standardised documentation for tility. As a consequence, there might be substantial dif- these transactions, included in the ISDA Master Agree- ferences between the composition of the Compartment’s ment. The Compartment may only conduct non-delivera- portfolio and that of the Benchmark Index. ble forward transactions with leading financial institu- Because the Compartment aims to physically replicate tions that specialise in this type of transaction, and with

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strict adherence to the standardised provisions of the › Concentration risk ISDA Master Agreement. › Political risk If the manager deems it necessary and in the best inter- › Tax risk est of the Shareholders, and to ensure adequate liquidity, the Compartment may hold liquid instruments such › Securities Lending Agreement Risk as deposits and money market instruments, among oth- › Repurchase and reverse repurchase agreement ers. risk

If the manager deems it necessary and in the best inter- › Financial derivative instruments risk est of the Shareholders, and to minimise the risk of un- The capital invested may fluctuate up or down, and in- derperforming the Benchmark, the Compartment may vestors may not recover the entire value of the capital use financial derivative instruments and techniques for initially invested. efficient management, within the limits specified in the investment restrictions. Risk management method: Commitment approach The Compartment may enter into Securities Lending Agreements and Repurchase and Reverse Repurchase Managers: PICTET AM Ltd, PICTET AM S.A. Agreements in order to increase its capital or its income or to reduce its costs or risks. Reference currency of the Compartment: USD German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall be Cut-off time for receipt of orders invested in physical equities (to the exclusion of ADRs, Subscription GDRs, derivatives and of any lent securities) that are By 12:00 noon on the Banking Day preceding the rele- listed on a stock exchange. vant Valuation Day.

Redemption Exposure to total return swaps, securities lending By 12:00 noon on the Banking Day preceding the rele- transactions, Reverse Repurchase Agreements and vant Valuation Day. Repurchase Agreements Switch The Compartment does not expect to be exposed to total The more restrictive time period of the two Compart- return swaps, Securities Lending Agreements, Repur- ments concerned. chase Agreements and Reverse Repurchase Agreements. Frequency of net asset value calculation Risk factors The net asset value will be determined as at each Bank- The risks listed below are the most relevant risks of the ing Day (the “Valuation Day”). Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer However, the Board of Directors reserves the right not to to the section "Risk Considerations" for a full description calculate the net asset value or to calculate a net asset of these risks. value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › Collateral risk vested and/or which it uses to value a material part of › Asset liquidity risk the assets. For further information, please refer to our website www.assetmanagement.pictet. › Investment restriction risk › Currency risk Calculation Day The calculation and publication of the net asset value as › Equity risk at a Valuation Day will take place on the Week Day fol- › Volatility risk lowing the relevant Valuation Day (the “Calculation Day”). › Emerging market risk

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Payment value date for subscriptions and redemptions Valuation Day. Subscriptions Calculation of the net asset value Within 2 Banking Days following the applicable Valua- The effect of net asset value corrections, more fully de- tion Day. scribed in the section “Swing pricing mechanism Redemptions Spread”, will not exceed 1%. Within 3 Banking Days following the applicable

PICTET – INDIA INDEX

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.45% 0.10% 0.30% IS USD 1 million 0.45% 0.10% 0.30% A *** 0.45% 0.10% 0.30% P − 0.60% 0.10% 0.30% R − 1.20% 0.10% 0.30% Z − 0% 0.10% 0.30% J USD 100 million 0.15% 0.10% 0.30% JS USD 100 million 0.15% 0.10% 0.30% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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61. PICTET – RUSSIA INDEX

Typical investor profile the Benchmark Index, the composition of the portfolio The Compartment is a passively managed investment ve- will not be adjusted, except (if applicable) in an effort to hicle for investors: better reproduce the performance of the Benchmark In- dex. Consequently, the Compartment will not aim to › Who wish to replicate the performance of the MSCI Russia Index. “outperform” the Benchmark Index and will not try to adopt a defensive positioning when markets are declin- Who are willing to bear significant variations in › ing or considered overvalued. A decline in the Bench- market value and thus have a low aversion to mark Index could thus lead to a corresponding decline risk. in the value of the Compartment’s Shares. Investment policy and objectives The Compartment aims for the full and complete physi- Investors should also be aware that rebalancing the cal replication of the MSCI Russia Index (hereinafter the Benchmark Index may incur transaction fees that will be “Benchmark Index”). It aims to achieve its investment borne by the Compartment and may affect the Compart- objective by investing in a portfolio of transferable secu- ment’s net asset value. rities or other eligible assets comprising all (or, on an In addition to the specific risks linked to the physical exceptional basis, a substantial number) of the compo- replication of the Benchmark Index, investors should be nents of the index concerned. aware that the Compartment is more generally subject to The composition of the Benchmark Index may be ob- market risks (i.e. the risk of the decrease in the value of tained at the address: http://www.msci.com. As a rule, an investment due to changes in market factors such as the Benchmark Index shall be rebalanced four times a exchange rates, interest rates, share prices or volatility). year. The Compartment may, in application of Article 44 of The a priori tracking error between the change in the the 2010 Act, invest up to 20% (and even 35% (for a value of the underliers of the Compartment and those of single issuer) in exceptional market circumstances, par- the Benchmark Index is expected to be below 0.30% ticularly in the case of regulated markets where certain p.a. in normal market conditions. transferable securities are largely dominant) of its net assets in the same issuer in order to replicate the com- Due to this physical replication, it may be difficult or position of its Benchmark Index. even impossible to purchase all the components of the Benchmark Index in proportion to their weighting in the The Compartment will hold a diversified portfolio and Benchmark Index or to purchase certain components could contain convertible bonds. due to their liquidity, the investment limits described in The Compartment will not invest in UCITS and other the section “Investment Restrictions”, other legal or reg- UCIs. ulatory limits, transaction and other fees incurred by the If the manager deems it necessary and in the best inter- Compartment, existing differences and the potential est of the Shareholders, and to ensure adequate liquid- mismatch between the Compartment and the Bench- ity, the Compartment may hold liquid instruments, such mark Index when the markets are closed. as deposits and money market instruments. The Compartment may marginally invest in securities If the manager deems it necessary and in the best inter- that are not part of the benchmark whenever necessary est of the Shareholders, and to minimise the risk of un- (e.g. when the index is rebalanced, in case of corporate derperforming the Benchmark, the Compartment may action or to manage cashflows), or in exceptional cir- use financial derivative instruments and techniques for cumstances such as market disruptions or extreme vola- efficient management, within the limits specified in the tility. As a consequence, there might be substantial dif- investment restrictions. ferences between the composition of the Compartment’s portfolio and that of the Benchmark Index. The Compartment may enter into Securities Lending Agreements and Repurchase and Reverse Repurchase Because the Compartment aims to physically replicate

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Agreements in order to increase its capital or its income investors may not recover the entire value of the capital or to reduce its costs or risks. initially invested.

The Compartment does not expect to be exposed to total Redemption By 12:00 noon on the Banking Day preceding the rele- return swaps, Repurchase Agreements and Reverse Re- vant Valuation Day. purchase Agreements.

Risk factors Switch The more restrictive time period of the two Compart- The risks listed below are the most relevant risks of the ments concerned. Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer Frequency of net asset value calculation to the section "Risk Considerations" for a full description The net asset value will be determined as at each Bank- of these risks. ing Day (the “Valuation Day”). › Collateral risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net asset › Settlement risk value that cannot be used for trading purposes due to › Asset liquidity risk closure of one or more markets in which the Fund is in- › Investment restriction risk vested and/or which it uses to value a material part of the assets. › Currency risk For further information, please refer to our website › Equity risk www.assetmanagement.pictet. › Volatility risk Calculation Day › Emerging market risk The calculation and publication of the net asset value as › Concentration risk at a Valuation Day will take place on the Week Day following the relevant Valuation Day (the “Calculation Political risk › Day”). › Risk of investing in Russia Payment value date for subscriptions and redemptions › Securities Lending Agreement Risk Within 3 Banking Days following the applicable Valua- tion Day. › Repurchase and reverse repurchase agreement risk Calculation of the net asset value The effect of net asset value corrections described in › Financial derivative instruments risk the section “Swing pricing mechanism /Spread” will not › Depositary receipts risk exceed 1%. The capital invested may fluctuate up or down, and

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PICTET – RUSSIA INDEX

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62. PICTET – EMERGING MARKETS HIGH DIVIDEND

Typical investor profile include, but are not limited to, the following: Mexico, The Compartment is an actively managed investment ve- Hong Kong, Singapore, Turkey, Poland, the Czech Re- hicle for investors: public, Hungary, Israel, South Africa, Chile, Slovakia, Brazil, the Philippines, Argentina, Thailand, South Ko- › Who wish to invest in shares issued by companies whose headquarters are located in and/or rea, Colombia, Taiwan, Indonesia, India, China, Roma- that conduct their main activities in emerging nia, Ukraine, Malaysia, Croatia, and Russia. markets, to generate regular distribution of rev- Investments in unlisted securities and in Russia, other enues. than on the Moscow Stock Exchange, will not exceed › Who are willing to bear significant variations in 10% of the Compartment’s net assets. market value and thus have a low aversion to risk. The Compartment may invest up to 10% of its net assets in UCITS and other UCIs, including other Compart- Investment policy and objectives ments of the Fund pursuant to Article 181 of the 2010 This Compartment will invest mainly in shares and simi- Act. lar securities of companies whose headquarters are located in and/or that conduct their main activity in The Compartment may enter into Securities Lending emerging countries and for which it is expected that div- Agreements and Repurchase and Reverse Repurchase idends are higher or greater than those of their reference Agreements in order to increase its capital or its income market. or to reduce its costs or risks.

The Compartment may invest up to 49% of its net as- The Compartment may also invest in structured prod- sets in China A Shares through (i) the QFII quota ucts, such as bonds or other transferable securities granted to an entity of the Pictet Group (subject to a whose returns are linked to the performance of an index, maximum of 35% of its net assets), (ii) the RQFII quota transferable securities or a basket of transferable securi- granted to an entity of the Pictet Group and/or (iii) the ties, or an undertaking for collective investment, for ex- Shanghai-Hong Kong Stock Connect programme (iv) the ample. Shenzhen-Hong Kong Stock Connect programme and/or The Compartment will not invest more than 10% of its (v) any similar acceptable securities trading and clearing assets in bonds or any other debt security, including linked programmes or access instruments which may be convertible bonds, money market instruments, deriva- available to the Compartment in the future. The Com- tives and/or structured products whose underliers are, or partment may also use financial derivative instruments offer exposure to, bonds or similar debt and interest-rate on China A Shares. securities. The Compartment may also invest in depositary receipts By analogy, investments in undertakings for collective (such as ADR, GDR, EDR) as well as preference shares. investment whose main objective is to invest in the as- The choice of investments will not be limited to a partic- sets listed above are also included in the 10% limit. ular geographic sector, a particular sector of economic Investments in debt instruments will not exceed 15%. activity or a given currency. However, depending on market conditions, the investments may be focused on For hedging and for any other purposes, within the lim- one country or on a limited number of countries and/or its set out in the chapter” Investment restrictions” of one economic activity sector and/or one currency. the Prospectus, the Compartment may use all types of financial derivative instruments traded on a regulated Emerging countries are defined as those considered, at market and/or over the counter (OTC) provided they are the time of investing, as industrially developing coun- contracted with leading financial institutions specialized tries by the International Monetary Fund, the World in this type of transactions. In particular, the Compart- Bank, the International Finance Corporation (IFC) or one ment may take exposure through any financial derivative of the leading investment banks. These countries instruments such as but not limited to warrants, futures,

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options, swaps (including but not limited to total return Compartment. Investors should be aware that other risks swaps, contracts for difference) and forwards on any un- may also be relevant to the Compartment. Please refer derlying in line with the 2010 Act as well as the invest- to the section "Risk Considerations" for a full description ment policy of the Compartment, including but not lim- of these risks. ited to, currencies (including non-deliverable forwards), › Collateral risk interest rates, transferable securities, basket of transferable securities, indices (including but not limited to › Asset liquidity risk commodities, precious metals or volatility indices), un- › Investment restriction risk dertakings for collective investment. › Currency risk Under exceptional circumstances, if the manager con- › Equity risk siders this to be in the best interest of the Shareholders, the Compartment may hold up to 100% of its net assets › Volatility risk in liquidities as amongst others cash deposits, money › Emerging market risk market funds (within the above-mentioned 10% limit) and money market instruments. › Political risk

The investment process integrates ESG criteria based on › Tax risk proprietary and third-party research to evaluate invest- › Risk of investing in Russia ment risks and opportunities. When selecting the Com- › QFII risk partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in › RQFII risk the Compartment’s portfolio. › Stock Connect risk Reference index: › Chinese currency exchange rate risk MSCI EM (USD). Used for portfolio composition, risk › Securities Lending Agreement Risk monitoring, performance objective and performance measurement. › Repurchase and reverse repurchase agreement risk The Compartment is designed to offer performance that › Financial derivative instruments risk is likely to be significantly different from that of the benchmark. › Structured Finance Securities risk The capital invested may fluctuate up or down, and in- German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall be vestors may not recover the entire value of the capital invested in physical equities (to the exclusion of ADRs, initially invested. GDRs, derivatives and of any lent securities) that are Risk management method: listed on a stock exchange. Commitment approach

Exposure to total return swaps, Securities Lending Managers: Agreements, Reverse Repurchase Agreements and Re- PICTET AM Ltd purchase Agreements Reference currency of the Compartment: The expected level of exposure to Securities Lending USD Agreements amounts to 5% of the Compartment’s net assets. Cut-off time for receipt of orders Subscription The Compartment does not expect to be exposed to total By 1:00 pm on the relevant Valuation Day. return swaps, Repurchase Agreements and Reverse Re- purchase Agreements. Redemption By 1:00 pm on the relevant Valuation Day. Risk factors The risks listed below are the most relevant risks of the Switch The more restrictive time period of the two

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Compartments concerned. calculate the net asset value or to calculate a net asset value that cannot be used for trading purposes due to Frequency of net asset value calculation The net asset value will be determined as at each Bank- closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of ing Day (the “Valuation Day”). the assets. However, the Board of Directors reserves the right not to For further information, please refer to our website www.assetmanagement.pictet. concerned (the “Calculation Day”).

Calculation Day Payment value date for subscriptions and redemptions The calculation and publication of the net asset value as Within 4 Week Days following the applicable Valuation at a Valuation Day will take place on the Valuation Day Day.

PICTET – EMERGING MARKETS HIGH DIVIDEND

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63. PICTET – QUEST EMERGING SUSTAINABLE EQUITIES

Typical investor profile 10% of the Compartment’s net assets. The Compartment is an actively managed investment ve- In addition, the Compartment may invest up to 10% of hicle for investors: its net assets in UCITS and other UCIs, including other › Who wish to invest in the shares of companies Compartments of the Fund pursuant to Article 181 of whose headquarters are located in and/or that the 2010 Act. conduct their main activity in emerging markets by identifying the sector leaders that practise Investments in debt instruments will not exceed 15%. sustainable development. The Compartment may enter into Securities Lending › Who are willing to bear price variations and Agreements and Repurchase and Reverse Repurchase thus have a low aversion to risk. Agreements in order to increase its capital or its income Investment policy and objectives or to reduce its costs or risks. This Compartment will invest mainly in shares and simi- The Compartment may also invest in structured prod- lar securities (such as ADRs and GDRs) of companies ucts, such as bonds or other transferable securities whose headquarters are located in and/or that conduct whose returns are linked to the performance of an index, their main activity in emerging countries, and that incor- transferable securities or a basket of transferable securi- porate sustainable development principles in their activ- ties, or an undertaking for collective investment, for ex- ities. ample.

The emerging countries are defined as those which, at For hedging and for any other purposes, within the lim- the time of the investment, are included in the universe its set out in the chapter” Investment restrictions” of of the MSCI Emerging Markets Index. the Prospectus, the Compartment may use all types of The manager uses appropriate information sources on financial derivative instruments traded on a regulated environmental, social and corporate governance aspects market and/or over the counter (OTC) provided they are to evaluate companies and define the investment uni- contracted with leading financial institutions specialized verse. The portfolio is constructed using a quantitative in this type of transactions. In particular, the Compart- method that adapts the portfolio according to financial ment may take exposure through any financial derivative stability, and the objective is to build a portfolio with su- instruments such as but not limited to warrants, futures, perior financial and sustainable characteristics. options, swaps (including but not limited to total return swaps, contracts for difference) and forwards on any un- The Compartment may invest in China A Shares through derlying in line with the 2010 Act as well as the invest- (i) the QFII quota granted to an entity of the Pictet ment policy of the Compartment, including but not lim- Group (subject to a maximum of 35% of its net assets), ited to, currencies (including non-deliverable forwards), (ii) the RQFII quota granted to an entity of the Pictet interest rates, transferable securities, basket of transfer- Group and/or (iii) the Shanghai-Hong Kong Stock Con- able securities, indices (including but not limited to nect programme and/or (iv) the Shenzhen-Hong Kong commodities, precious metals or volatility indices), un- Stock Connect programme and/or (v) any similar ac- dertakings for collective investment. ceptable securities trading and clearing linked programmes or access instruments which may be available Under exceptional circumstances, if the manager con- to the Compartment in the future. The Compartment siders this to be in the best interest of the Shareholders, may also use financial derivative instruments on China A the Compartment may hold up to 100% of its net assets Shares. in liquidities as amongst others cash deposits, money market funds (within the above-mentioned 10% limit) Investments in unlisted securities and in Russia, other and money market instruments. than on the Moscow Stock Exchange will not exceed

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The investment process integrates ESG criteria based on › RQFII risk proprietary and third-party research to evaluate invest- › Stock Connect risk ment risks and opportunities. The Compartment adopts a best in class approach which seeks to invest in securi- › Chinese currency exchange rate risk ties of issuers with high ESG characteristics while avoid- › Securities Lending Agreement Risk ing those with low ESG characteristics › Repurchase and reverse repurchase agreement Reference index: risk MSCI EM (USD). Used for portfolio composition, risk › Financial derivative instruments risk monitoring, performance objective and performance measurement. › Structured Finance Securities risk › Depositary receipts risk The Compartment is designed to offer performance that is likely to be significantly different from that of the The capital invested may fluctuate up or down, and in- benchmark. vestors may not recover the entire value of the capital initially invested. German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall be Risk management method: Commitment approach invested in physical equities (to the exclusion of ADRs, GDRs, derivatives and of any lent securities) that are Managers: listed on a stock exchange. PICTET AM S.A., PICTET AM Ltd

Exposure to total return swaps, Securities Lending Reference currency of the Compartment: Agreements, Reverse Repurchase Agreements and Re- USD purchase Agreements Cut-off time for receipt of orders The Compartment does not expect to be exposed to total Subscription return swaps, Securities Lending Agreements, Repur- By 1:00 pm on the relevant Valuation Day. chase Agreements and Reverse Repurchase Agreements. Redemption Risk factors By 1:00 pm on the relevant Valuation Day. The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks Switch The more restrictive time period of the two Compart- may also be relevant to the Compartment. Please refer ments concerned. to the section "Risk Considerations" for a full description of these risks. Frequency of net asset value calculation The net asset value will be determined as at each Bank- › Collateral risk ing Day (the “Valuation Day”). › Asset liquidity risk However, the Board of Directors reserves the right not to › Investment restriction risk calculate the net asset value or to calculate a net asset › Currency risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- Equity risk › vested and/or which it uses to value a material part of › Volatility risk the assets. › Emerging market risk For further information, please refer to our website › Political risk www.assetmanagement.pictet. › Tax risk Calculation Day The calculation and publication of the net asset value as › Risk of investing in Russia at a Valuation Day will take place on the relevant › QFII risk

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Valuation Day (the “Calculation Day”). Day.

Payment value date for subscriptions and redemptions Within 4 Week Days following the applicable Valuation

PICTET – QUEST EMERGING SUSTAINABLE EQUITIES

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64. PICTET – QUEST GLOBAL EQUITIES

Typical investor profile The Compartment may also invest in structured prod- The Compartment is an actively managed investment ucts such as bonds or other transferable securities vehicle for investors: whose returns could be, for example, related to the performance of an index in accordance with Article 9 › Who wish to invest worldwide in the shares of top quality companies (in terms of sound- of the Luxembourg regulations of 8 February 2008, ness and financial stability). transferable securities or a basket of transferable securities, or an undertaking for collective investment › Who are willing to bear variations in market in accordance with the Luxembourg regulations of value and thus have a low aversion to risk. 8 February 2008. Investment policy and objectives This Compartment aims to enable investors to benefit The Compartment may use derivative techniques and from growth in the worldwide equity market (includ- instruments for hedging or for efficient portfolio man- ing in emerging countries). agement within the limits stipulated in the investment restrictions. This Compartment will invest primarily in shares and similar securities of companies that the manager con- Under exceptional circumstances, if the manager siders to be of superior quality in terms of soundness considers this to be in the best interest of the Share- and financial stability. holders, the Compartment may hold up to 100% of its net assets in liquidities as amongst others cash The Compartment may invest in China A Shares deposits, money market funds (within the above-men- through (i) the QFII quota granted to an entity of the tioned 10% limit) and money market instruments. Pictet Group (subject to a maximum of 35% of its net assets), (ii) the RQFII quota granted to an entity The investment process integrates ESG criteria based of the Pictet Group and/or (iii) the Shanghai-Hong on proprietary and third-party research to evaluate in- Kong Stock Connect programme and/or (iv) the Shen- vestment risks and opportunities. When selecting the zhen-Hong Kong Stock Connect programme and/or Compartment’s investments, securities of issuers (v) any similar acceptable securities trading and with low ESG characteristics may be purchased and clearing linked programmes or access instruments retained in the Compartment’s portfolio. which may be available to the Compartment in the Reference index: future. The Compartment may also use financial de- MSCI World (USD). Used for portfolio composition, rivative instruments on China A Shares. risk monitoring, performance objective and performance measurement. The Compartment may also invest in depositary receipts (such as ADR, GDR, EDR). The Compartment is designed to offer performance In addition, the Compartment may also invest up to that is likely to be significantly different from that of 10% of its net assets in UCITS and other UCIs, in- the benchmark. cluding other Compartments of the Fund pursuant to Article 181 of the 2010 Act. German Investment Tax Act restriction: At least 51% of the Compartment’s net assets shall The Compartment will not invest more than 10% of its be invested in physical equities (to the exclusion of assets in bonds (including convertible bonds and prefer- ADRs, GDRs, derivatives and of any lent securities) ential shares) and any other debt security, money mar- that are listed on a stock exchange. ket instruments, derivatives and/or structured products and/or undertakings for collective investment (UCIs) whose underlying assets are, or offer exposure to, bonds or similar debt and interest-rate securities.

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Exposure to total return swaps, Securities Lending Reference currency of the Compartment: Agreements, Reverse Repurchase Agreements and USD Repurchase Agreements Cut-off time for receipt of orders The Compartment does not expect to be exposed to Subscription total return swaps, Securities Lending Agreements, By 1:00 pm on the relevant Valuation Day. Repurchase Agreements and Reverse Repurchase Agreements. Redemption By 1:00 pm on the relevant Valuation Day. Risk factors The risks listed below are the most relevant risks of Switch the Compartment. Investors should be aware that The more restrictive time period of the two Compart- other risks may also be relevant to the Compartment. ments concerned. Please refer to the section "Risk Considerations" for a Frequency of net asset value calculation full description of these risks. The net asset value will be determined as at each Banking Day (the “Valuation Day”). › Collateral risk However, the Board of Directors reserves the right not › Currency risk to calculate the net asset value or to calculate a net › Equity risk asset value that cannot be used for trading purposes › Volatility risk due to closure of one or more markets in which the Fund is invested and/or which it uses to value a ma- › Emerging market risk terial part of the assets. › Risk of investing in the PRC For further information, please refer to our website › QFII risk www.assetmanagement.pictet.

› RQFII risk Calculation Day › Stock Connect risk The calculation and publication of the net asset value as at a Valuation Day will take place on the relevant › Financial derivative instruments risk Valuation Day (the “Calculation Day”). › Structured Finance Securities risk Payment value date for subscriptions and redemp- › Leverage risk tions Subscriptions The capital invested may fluctuate up or down, and Within 2 Week Days following the applicable Valua- investors may not recover the entire value of the capi- tion Day. tal initially invested. Redemptions Risk management method: Within 3 Week Days following the applicable Valua- Commitment approach tion Day. Managers: PICTET AM S.A., PICTET AM Ltd

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PICTET–QUEST GLOBAL EQUITIES

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65. PICTET – ROBOTICS

Typical investor profile However, the Compartment: The Compartment is an actively managed investment  may invest up to 10% of its net assets in vehicle for investors: UCITS and other UCIs, including other Com- partments of the Fund pursuant to the provi- › Who wish to invest in equities of interna- sions of Article 181 of the Law of 2010; tional companies that contribute to and/or profit from the value chain in robotics and  may not invest more than 10% of its net as- enabling technologies. sets in debt securities of any type (including convertible bonds and preference shares) and › Who are willing to bear significant variations money market instruments, directly or indi- in market value and thus have a low aversion rectly (via derivatives, structured products, to risk. UCITS and other UCIs). Investment policy and objectives Under exceptional circumstances, if the manager This Compartment aims to achieve capital growth by considers this to be in the best interest of the Share- investing mainly in equities and equity related securi- holders, the Compartment may hold up to 100% of ties (such as convertible bonds, ADR, GDR) issued by its net assets in liquidities as amongst others cash companies that contribute to and/or profit from the deposits, money market funds (within the above-men- value chain in robotics and enabling technologies. tioned 10% limit) and money market instruments. These investments will be made in compliance with article 41 of the 2010 Act. The Compartment may invest in structured products such as bonds or other transferable securities whose The targeted companies will be active mainly, but not returns are linked, for example, to the performance of exclusively, in the following areas: Robotics applica- an index in accordance with Article 9 of the Luxem- tions and components, automation, autonomous sys- bourg regulations of 8 February 2008, transferable tems, sensors, microcontrollers, 3D printing, data securities or a basket of transferable securities, or an processing, actuation technology as well as image, undertaking for collective investment in accordance motion or voice recognition and other enabling tech- with the Luxembourg regulations of 8 February 2008. nologies and software. The Compartment may enter into Securities Lending The Compartment may invest up to 30% of its net Agreements and Repurchase and Reverse Repur- assets in China A Shares through (i) the QFII quota chase Agreements in order to increase its capital or granted to an entity of the Pictet Group, (ii) the RQFII quota granted to an entity of the Pictet Group income, or to reduce costs or risks. and/or (iii) the Shanghai-Hong Kong Stock Connect The Compartment may use derivative techniques and programme (iv) the Shenzhen-Hong Kong Stock Con- instruments for efficient management, within the lim- nect programme and/or (v) any similar acceptable se- its specified in the investment restrictions. curities trading and clearing linked programmes or access instruments which may be available to the The investment process integrates ESG criteria based Compartment in the future. The Compartment may on proprietary and third-party research to evaluate in- also use financial derivative instruments on China A vestment risks and opportunities. When selecting the Shares. Compartment’s investments, securities of issuers The Compartment may invest in any country (includ- with low ESG characteristics may be purchased and ing emerging countries), in any economic sector and retained in the Compartment’s portfolio. in any currency. However, depending on market conditions, the investments may be focused on one Reference index: country or on a limited number of countries and/or MSCI ACWI (USD). Used for performance objective one economic activity sector and/or one currency. and performance measurement.

On an ancillary basis, the Compartment may invest in The portfolio composition is not constrained relative any other type of eligible assets, such as equities to the benchmark, so the similarity of the Compart- other than those above-mentioned, debt securities ment’s performance to that of the benchmark may (including money market instruments), structured vary. products (as described below), undertakings for collective investment (UCITS and other UCIs), cash.

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German Investment Tax Act restriction: investors may not recover the entire value of the capi- At least 51% of the Compartment’s net assets shall tal initially invested. be invested in physical equities (to the exclusion of Risk management method: ADRs, GDRs, derivatives and of any lent securities) Commitment approach that are listed on a stock exchange. Manager: Exposure to total return swaps, Securities Lending PICTET AM S.A. Agreements, Reverse Repurchase Agreements and Repurchase Agreements Reference currency of the Compartment: The expected level of exposure to Securities Lending USD Agreements amounts to 20% of the Compartment’s Cut-off time for receipt of orders net assets. Subscription The Compartment does not expect to be exposed to By 1:00 pm on the relevant Valuation Day. total return swaps, Repurchase Agreements and Re- Redemption verse Repurchase Agreements. By 1:00 pm on the relevant Valuation Day.

Risk factors Switch The risks listed below are the most relevant risks of The most restrictive time period of the two Compart- the Compartment. Investors should be aware that ments concerned. other risks may also be relevant to the Compartment. Frequency of net asset value calculation Please refer to the section "Risk Considerations" for a The net asset value will be determined as at each full description of these risks. Banking Day (the “Valuation Day”). › Collateral risk However, the Board of Directors reserves the right not › Currency risk to calculate the net asset value or to calculate a net › Equity risk asset value that cannot be used for trading purposes due to closure of one or more markets in which the › Volatility risk Fund is invested and/or which it uses to value a material part of the assets. › Emerging market risk › Concentration risk For further information, please refer to our website www.assetmanagement.pictet. › QFII risk › RQFII risk Calculation Day The calculation and publication of the net asset value › Stock Connect risk as at a Valuation Day will take place on the relevant › Chinese currency exchange rate risk Valuation Day (the “Calculation Day”).

› Securities Lending Agreement Risk Payment value date for subscriptions and redemp- › Repurchase and reverse repurchase agree- tions ment risk Within 2 Week Days following the applicable Valua- tion Day. › Financial derivative instruments risk › Structured Finance Securities risk › Leverage risk

The capital invested may fluctuate up or down, and

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PICTET – ROBOTICS

*Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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66. PICTET – GLOBAL EQUITIES DIVERSIFIED ALPHA

Typical investor profile Traditional long positions are coupled with (synthetic) The Compartment is an actively managed investment long and short positions, which will be achieved vehicle for investors: through the use of financial derivative instruments (amongst others total return swaps, credit default › Who wish to benefit from the performance of swaps, futures and options). global equities, as well as from active and diversified management. The Master Fund will principally invest in bonds and › Who are willing to bear variations in market other related debt securities (such as corporate value and thus have a low aversion to risk. and/or sovereign and/or financial bonds, covered bonds and convertible bonds), equities, equity re- Investment policy and objectives lated securities (such as but not limited to ordinary or This Compartment has two aims; enabling investors preferred shares), deposits and money market instru- to benefit firstly from growth in the worldwide equity ments (for cash management only). For that purpose, market and secondly from active management strate- the Master Fund may invest up to 25% of its assets gies. in China A Shares through (i) the RQFII quota This Compartment is a feeder fund for the Compart- granted to PICTET AM Ltd (ii) the Shanghai-Hong ment Pictet TR - Diversified Alpha (the “Master Kong Stock Connect programme (iii) the Shenzhen- Fund”) and it will invest at least 85% of its assets in Hong Kong Stock Connect programme and/or (iv) any Class I shares in the Master Fund. similar acceptable securities trading and clearing linked programmes or access instruments which may In addition, the Compartment may also invest up to be available to the Master Fund in the future. The 15% of its assets in Master Fund may also use financial derivative instruments on China A Shares.  Liquidities on an ancillary basis. The Master Fund may be exposed without limitation  Derivative financial instruments for hedging to non-investment grade debt securities, including purposes. distressed and defaulted securities for up to 10 % of The Compartment may use derivative financial instru- its net assets. Although the Master Fund is not sub- ments for the purposes of hedging in relation to its ject to any limit regarding the rating of the non-in- benchmark index, the MSCI World index. In this way, vestment grade debt securities concerned (except for derivative instruments will be used to expose the the 10% maximum invested in distressed and de- Compartment to global equities, for example, by con- faulted securities), the Manager intends to operate cluding swaps contracts exchanging the performance the Master Fund in a way that the average rating of of global equities for monetary rates. This exposure the debt securities held by the Compartment will be will amount to around 100% of its assets. equal or higher than BB- over the long term.

Reference index: The Master Fund may also invest up to 10% of its as- MSCI World (EUR). Used for risk monitoring, perfor- sets in Sukuk al Ijarah, Sukuk al Wakalah, Sukuk al mance objective and performance measurement. Mudaraba or any other type of Shariah-compliant fixed-income securities within the limits of the grand- The Compartment is designed to offer performance ducal regulation dated 8 February 2008. that is likely to be significantly different from that of the benchmark. The choice of investments will neither be limited by geographical area (including emerging markets), an Investment policy and objectives of the Master Fund: economic sector nor in terms of currencies in which The Master Fund follows a set of long/short invest- investments will be denominated. However, depend- ment strategies which are generally market neutral. ing on financial market conditions, a particular focus The objective of the Master Fund is to achieve long- can be placed in a single country and/or in a single term capital growth in absolute terms with a strong currency and/or in a single economic sector. focus on capital preservation.

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The Master Fund may enter into securities lending, be maintained, which may be substantial or even rep- repurchase and reverse repurchase transactions in or- resent, under exceptional circumstances, 100% of der to increase its capital or its revenue or to reduce the Master Fund’s assets. its costs or risks. The performance of the Compartment and of the For hedging and for any other purposes, within the Master Fund will not be identical, primarily due to limits set out in the chapter” Investment restrictions” the way in which the Compartment hedges risk in re- of the prospectus, the Master Fund may use all types lation to its benchmark index and secondly, due to of financial derivative instruments traded on a regu- the fees and commissions that the Compartment in- lated market and/or over the counter (OTC) provided curs. they are contracted with leading financial institutions specialized in this type of transactions. In particular, General information about the Master Fund: the Master Fund may take exposure through any fi- The Master Fund is a Compartment of Pictet TR, an nancial derivative instruments such as but not lim- open-ended investment company incorporated under ited to warrants, futures, options, swaps (including Luxembourg law on 8 January 2008 and classified as but not limited to total return swaps, contracts for an undertaking for collective investment in transfera- difference, credit default swaps) and forwards on any ble securities (“UCITS”) in accordance with Directive underlying in line with the Law of 2010 as well as 2009/65/EC of the European Parliament and Council the investment policy of the Master Fund, including issued on 13 July 2009, as amended. but not limited to, currencies (including non-delivera- The Master Fund’s Management Company is Pictet ble forwards), interest rates, transferable securities, Asset Management (Europe) S.A. (the “Management basket of transferable securities, indices (including Company”), a ‘société anonyme’ (“limited company”) but not limited to commodities, precious metals or incorporated on 14 June 1995, the registered offices volatility indices), undertakings for collective invest- of which are located at 15, avenue J. F. Kennedy, ment. As a consequence of this use of financial deri- Luxembourg. Pictet Asset Management (Europe) S.A. vate instruments for the long and short positions, the is also the management company for the Fund. Master Fund will have a considerable leverage. The Master Fund’s prospectus and its most recent The Master Fund may also invest in structured prod- annual and/or semi-annual report may be obtained ucts, such as but not limited to notes, certificates or from the fund’s registered office or from the website any other transferable securities whose returns are www.assetmanagement.pictet. correlated with changes in, among others, an index selected in accordance with the article 9 of the The Compartment and the Master Fund have taken grand-ducal regulation dated 8 February 2008, cur- appropriate measures to coordinate the timing of rencies, exchange rates, transferable securities, a their respective net asset value calculation and publi- basket of transferable securities, or an undertaking cation in order to avoid market timing in their fund for collective investment, at all times in compliance units, preventing arbitrage opportunities. with the grand-ducal regulation. The Management Company has set out internal rules Those investments may not be used to elude the in- of conduct governing the documents and any infor- vestment policy of the Master Fund. mation that the Master Fund is required to give the Compartment. In addition, the Master Fund may invest up to 10% of its net assets in UCITS and/or other UCIs includ- Tax implications ing, without limitation, other Compartments of the Please refer to the tax status section of the Prospec- Master Fund itself, pursuant to Article 181 of the tus. 2010 Act as indicated in the “investment restrictions” section. Risk factors As a feeder fund, the Compartment is subject to the At times where the Investment Managers consider it same risks as the Master Fund. as appropriate, prudent levels of cash, cash equivalents, money market funds (within the above mentioned 10% limit) and money market instruments will

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Risk factors for the Master Fund: Securities Lending Agreements, Reverse Repurchase The risks listed below are the main risks of the Mas- Agreements and Repurchase Agreements. ter Fund. Investors should be aware that other risks may also be relevant to the Master Fund. Please refer Risk factors to the section "Risk Considerations" of the prospectus The risks listed below are the most relevant risks of of the Master Fund for a full description of these the Compartment in addition to the above-mentioned risks. risks inherent to the Master Fund, to which the Com- partment is exposed by virtue of its investment in this › Counterparty risk; fund. Investors should be aware that other risks may also be relevant to the Compartment. Please refer to › Credit risk; the section "Risk Considerations" for a full descrip- › High Yield investment risk; tion of these risks. › Distressed and defaulted debt securities risk › Collateral risk › Equity risk; › Currency risk › Interest rate risk; › Volatility risk Emerging market risk; › The capital invested may fluctuate up or down, and › Financial derivative instruments risk; investors may not recover the entire value of the capital initially invested. › Leverage risk; › Sukuk risk; As the Fund invests in other UCITS and/or UCIs, the investor is exposed to a duplication of fees and com- › Concentration risk; missions. › Political risk; Risk management method for the Master Fund: › RQFII risk; Absolute value-at-risk approach. › Stock Connect risk Risk management method for the Compartment: Invested capital may fluctuate downwards as well as Relative value at risk (VaR). The VaR of the Compart- upwards, and investors may not recuperate the entire ment shall be compared with the VaR of the MSCI value of the capital initially invested. World (EUR).

Exposure to total return swaps, Securities Lending Expected leverage of the Compartment: Agreements, Reverse Repurchase Agreements and 100%. Repurchase Agreements of the Compartment Depending on market conditions, the leverage may By way of derogation to the maximum exposure re- be greater. ferred to in the general part of the Prospectus, no more than 110% of the Compartment’s net assets Expected cumulative leverage with the Master Fund: will be subject to total return swaps. 600% Depending on market conditions, the leverage may The expected level of exposure to total return swaps be greater. amounts to 105% of the Compartment’s net assets. Method of calculating leverage of the Master Fund The Compartment does not expect to be exposed to and the Compartment: Securities Lending Agreements, Repurchase Agree- Sum of the notional amounts. ments and Reverse Repurchase Agreements. Managers: Exposure to total return swaps, Securities Lending PICTET AM S.A., PICTET AM Ltd Agreements, Reverse Repurchase Agreements and Repurchase Agreements of the Master Fund Reference currency of the Master Fund and the Com- Please refer to the prospectus of the Master Fund for partment: information on its exposure to total return swaps, EUR

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Cut-off time for receipt of orders able to make comparisons to benchmark indices) or Subscription fees and cannot under any circumstances be used as By 12:00 noon, two Banking Days preceding the rele- a basis for subscription or redemption orders. vant Valuation Day. However, the Board of Directors reserves the right not Redemption to calculate the net asset value or to calculate a net By 12:00 noon, two Banking Days preceding the rele- asset value that cannot be used for trading purposes vant Valuation Day. due to closure of the Master Fund and/or of one or several of the markets in which the Fund is invested Switch and/or which it uses to value a material part of the The most restrictive time period of the two Compart- assets. ments concerned. For further information, please refer to our website Frequency of net asset value calculation www.assetmanagement.pictet. The net asset value will be determined as at each Thursday (the following Banking Day if that day is not Calculation Day a Banking Day) (the “Valuation Day”). The calculation and publication of the net asset value as at a Valuation Day will take place on Friday follow- Furthermore, an additional net asset value may be ing the relevant Valuation Day or the following Week calculated as at each Banking Day; however, this ad- Day if that day is not a Week Day (the “Calculation ditional net asset value, whilst published, will only be Day”). used for valuation purposes, no subscription or redemption orders will be accepted on the basis of it. Payment value date for subscriptions and redemptions In addition, a non-negotiable net asset value may Within 3 Week Days following the applicable Valua- also be calculated as at each Week Day which is not tion Day. a Banking Day; these non-negotiable net asset values may be published but may only be used to calculate performance, statistics (particularly in order to be

PICTET – GLOBAL EQUITIES DIVERSIFIED ALPHA

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.10% 0.05% 0.05% A *** 0.10% 0.05% 0.05% P − 0.80% 0.05% 0.05% Z − 0% 0.05% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

Fees charged within the Master Fund and met by the Compartment due to its investment in the Master Fund: Management fee: Max 1.60% Service fee: Max 0.35% Depositary Bank fee: max 0.22% Performance fee: 20% per year of the performance of the net asset value per Share, (measured against the High-Water Mark) over the performance of the benchmark index.

For more information on the costs borne by the Compartment as a result of its investment in units of the Master Fund, please refer to the section “Fund Expenses” in the Master Fund’s prospectus.

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67. PICTET – GLOBAL THEMATIC OPPORTUNITIES

Typical investor profile financial derivative instruments and/or structured The Compartment is an actively managed investment products whose underliers are or offer exposure to vehicle for investors: debt securities.

› Who wish to invest in securities exposed to By analogy, investments in undertakings for collective global investment themes. investment whose main objective is to invest in debt › Who are willing to bear significant variations securities are also included in the 10% limit. in market value and thus have a low aversion to risk. Under exceptional circumstances, if the manager considers this to be in the best interest of the Share- Investment policy and objectives holders, the Compartment may hold up to 100% of The Compartment aims to achieve capital growth by its net assets in liquidities as amongst others cash investing mainly in equities and equity related securities (such as ADR, GDR, EDR) issued by companies deposits, money market funds (within the above-men- throughout the world (including emerging countries). tioned 10% limit) and money market instruments. The Compartment will invest mainly in securities that The Compartment may invest in structured products may benefit from global long-term market themes re- without embedded derivatives, such as bonds or sulting from secular changes in economic and social other transferable securities whose returns are linked, factors such as demographics, lifestyle, regulations or for example, to the performance of an index in ac- the environment. cordance with Article 9 of the Luxembourg regulations of 8 February 2008, transferable securities or a The Compartment may also invest up to 10% of its basket of transferable securities, or an undertaking net assets in real estate investments trusts (REITs). for collective investment in accordance with the Lux- embourg regulations of 8 February 2008 and the In addition, the Compartment may also invest up to 2010 Act. 10% of its net assets in UCITS and other UCIs in compliance with the provisions of Article 41. (1) e) of The Compartment may enter into Securities Lending the 2010 Act, including other Compartments of the Agreements and Repurchase and Reverse Repur- Fund pursuant to Article 181 of the 2010 Act. chase Agreements in order to increase its capital or income, or to reduce costs or risks. The Compartment may invest in any country (including emerging countries), in any economic sector and The Compartment may use derivative techniques and in any currency. However, depending on market con- instruments for efficient management, within the lim- ditions, the investments may be focused on one its specified in the investment restrictions. country or on a limited number of countries and/or one economic activity sector and/or one currency. Financial derivative instruments may include options, futures, swaps, contracts for difference, forward ex- The Compartment may invest in China A Shares changes contracts (including non-deliverable for- through (i) the QFII quota granted to the Managers wards). (subject to a maximum of 35% of its net assets), (ii) the RQFII quota granted to the Managers and/or (iii) The investment process integrates ESG criteria based the Shanghai-Hong Kong Stock Connect programme on proprietary and third-party research to evaluate in- and/or (iv) the Shenzhen-Hong Kong Stock Connect vestment risks and opportunities. When selecting the programme and/or (v) any similar acceptable securi- Compartment’s investments, securities of issuers ties trading and clearing linked programmes or access instruments which may be available to the Com- with low ESG characteristics may be purchased and partment in the future.. The Compartment may also retained in the Compartment’s portfolio. use financial derivative instruments on China A Reference index: Shares. MSCI ACWI (USD). Used for performance objective and performance measurement. The Compartment will not invest more than 10% of its assets in bonds or any other debt security (including convertible bonds), money market instruments,

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The portfolio composition is not constrained relative › Real Estate Investment Trusts (REITs) risk to the benchmark, so the similarity of the Compart- ment’s performance to that of the benchmark may › Depositary receipts risk vary. › Leverage risk German Investment Tax Act restriction: The capital invested may fluctuate up or down, and At least 51% of the Compartment’s net assets shall investors may not recover the entire value of the capi- be invested in physical equities (to the exclusion of tal initially invested. ADRs, GDRs, derivatives and of any lent securities) that are listed on a stock exchange. Risk management method: Commitment approach Exposure to total return swaps, Securities Lending Agreements, Reverse Repurchase Agreements and Manager: Repurchase Agreements PICTET AM S.A. The expected level of exposure to Securities Lending Reference currency of the Compartment: Agreements amounts to 5% of the Compartment’s USD net assets. Cut-off time for receipt of orders The Compartment does not expect to be exposed to Subscription total return swaps, Repurchase Agreements and Re- By 1:00 pm on the relevant Valuation Day. verse Repurchase Agreements. Redemption By 1:00 pm on the relevant Valuation Day. Risk factors The risks listed below are the most relevant risks of Switch the Compartment. Investors should be aware that The more restrictive time period of the two Compart- other risks may also be relevant to the Compartment. ments concerned. Please refer to the section "Risk Considerations" for a Frequency of net asset value calculation full description of these risks. The net asset value will be determined as at each › Collateral risk Banking Day (the “Valuation Day”). › Currency risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net › Equity risk asset value that cannot be used for trading purposes › Volatility risk due to closure of one or more markets in which the › Emerging market risk Fund is invested and/or which it uses to value a material part of the assets. › QFII risk For further information, please refer to our website › RQFII risk www.assetmanagement.pictet. › Stock Connect risk Calculation Day › Chinese currency exchange rate risk The calculation and publication of the net asset value › Securities Lending Agreement Risk as at a Valuation Day will take place on the relevant Valuation Day (the “Calculation Day”). › Repurchase and reverse repurchase agreement risk Payment value date for subscriptions and redemptions › Financial derivative instruments risk Within 2 Week Days following the applicable Valua- › Structured Finance Securities risk tion Day. › Concentration risk

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PICTET – GLOBAL THEMATIC OPPORTUNITIES

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68. PICTET – CORTO EUROPE LONG SHORT

Typical investor profile Except the above-mentioned geographical criteria, The Compartment is an actively managed investment the choice of investments will neither be limited by vehicle for investors: an economic sector nor in terms of currencies in which investments will be denominated. However, › Who wish to invest primarily in shares of Eu- depending on financial market conditions, a particu- ropean companies which future looks prom- lar focus can be placed in a single European country ising while taking short positions through the and/or in a single currency and/or in a single eco- use of financial derivative instruments in nomic sector. shares that look overvalued. › Who are willing to bear variations in market The Master Fund may enter into securities lending, value and thus have a low aversion to risk. repurchase and reverse repurchase transactions in order to increase its capital or its revenue or to reduce Investment policy and objectives The objective of the Compartment is to achieve long- its costs or risks. term capital growth in absolute terms with a strong For hedging and for any other purposes, within the focus on capital preservation. limits set out in the chapter” Investment restrictions” of the prospectus, the Master Fund may use all types This Compartment is a feeder fund of the Compart- of financial derivative instruments traded on a regu- ment Pictet TR – Corto Europe (the “Master Fund”) lated market and/or over the counter (OTC) provided and it will invest at least 85% of its assets in Class M they are contracted with leading financial institutions shares in the Master Fund. specialized in this type of transactions. In particular, In addition, the Compartment may also invest up to the Master Fund may take exposure through any fi- 15% of its assets in liquidities on an ancillary ba- nancial derivative instruments such as but not lim- sis.Reference index: ited to warrants, futures, options, swaps (including MSCI Europe (EUR). Used for risk monitoring and but not limited to total return swaps, contracts for performance measurement. difference, credit default swaps) and forwards on any underlying in line with the Law of 2010 as well as The Compartment is designed to offer performance the investment policy of the Master Fund, including that is likely to be significantly different from that of but not limited to, currencies (including non-delivera- the benchmark. ble forwards), transferable securities, basket of transferable securities and indices. Investment policy and objectives of the Master Fund: The Master Fund follows an equity long/short invest- The Master Fund may also invest in structured prod- ment strategy. The objective of the Master Fund is to ucts, such as but not limited to credit-linked notes, achieve long-term capital growth in absolute terms certificates or any other transferable securities whose with a strong focus on capital preservation. returns are correlated with changes in, among others, an index selected in accordance with the article 9 of Traditional long positions are coupled with (synthetic) the Grand-ducal regulation dated 8 February 2008, long and short positions, which will be achieved currencies, exchange rates, transferable securities, a through the use of financial derivative instruments basket of transferable securities, or an undertaking (such as total return swaps). for collective investment, at all times in compliance The Master Fund will principally invest in equities, with the grand-ducal regulation. equity related securities (such as but not limited to Those investments may not be used to elude the in- ordinary or preferred shares), deposits and money vestment policy of the Master Fund. market instruments (for cash management only). The main portion of the equities and equity related secu- In addition, the Master Fund may invest up to 10% rities part will be invested in companies which are of its net assets in UCITS and/or other UCIs. domiciled, headquartered or exercise the predomi- nant part of their economic activity in Europe.

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At times where the Investment Managers consider it Risk factors for the Master Fund: as appropriate, prudent levels of cash, cash equiva- The risks listed below are the main risks of the Mas- lents, money market funds (within the above men- ter Fund. Investors should be aware that other risks tioned 10% limit) and money market instruments will may also be relevant to the Master Fund. Please refer be maintained, which may be substantial or even rep- to the section "Risk Considerations" of the prospectus resent, under exceptional circumstances, 100% of of the Master Fund for a full description of these the Master Fund’s assets. risks.

The performances of the Compartment and of the › Counterparty risk; Master Fund will differ, mainly due to the fees and › Equity risk; commissions that the Compartment incurs. Apart from this effect, the Compartment and the Master › Financial derivative instruments risk; Fund will show a similar performance, because the › Concentration risk; former will invest most of its net asset value into the latter. › Leverage risk. Invested capital may fluctuate downwards as well as General information about the Master Fund: upwards, and investors may not recuperate the entire The Master Fund is a Compartment of Pictet TR, an value of the capital initially invested. open-ended investment company incorporated under Luxembourg law on 8 January 2008 and classified as Exposure to total return swaps, Securities Lending an undertaking for collective investment in transfera- Agreements, Reverse Repurchase Agreements and ble securities (“UCITS”) in accordance with Directive Repurchase Agreements of the Compartment 2009/65/EC of the European Parliament and Council The Compartment does not expect to be exposed to issued on 13 July 2009, as amended. Securities Lending Agreements, total return swaps, Repurchase Agreements and Reverse Repurchase The Master Fund’s Management Company is Pictet Agreements Asset Management (Europe) S.A. (the “Management Company”), a ‘société anonyme’ (“limited company”) Exposure to total return swaps, Securities Lending incorporated on 14 June 1995, the registered offices Agreements, Reverse Repurchase Agreements and of which are located at 15, avenue J. F. Kennedy, Repurchase Agreements of the Master Fund Luxembourg. Pictet Asset Management (Europe) S.A. Please refer to the prospectus of the Master Fund for is also the management company for the Fund. information on its exposure to total return swaps, Se- curities Lending Agreements, Reverse Repurchase The Master Fund’s prospectus, KIID, and its most re- Agreements and Repurchase Agreements. cent annual and/or semi-annual report may be obtained from the Fund’s registered office or from the Risk factors of the Compartment website www.assetmanagement.pictet The most relevant risks of the Compartment are the risks inherent to the Master Fund to which the Com- The Compartment and the Master Fund have taken partment is exposed by virtue of its investment in the appropriate measures to coordinate the timing of Master Fund. their respective net asset value calculation and publication in order to avoid market timing in their fund The capital invested may fluctuate up or down, and units, preventing arbitrage opportunities. investors may not recover the entire value of the capital initially invested. The Management Company has set out internal rules of conduct governing the documents and any infor- As the Compartment invests in other UCITS and/or mation that the Master Fund is required to give the UCIs, the investor is exposed to a duplication of fees Compartment. and commissions.

Tax implications Risk management method for the Master Fund: Please refer to the tax status section of the Prospec- Absolute value-at-risk approach. tus.

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Expected leverage of the Compartment: Switch 0%. The most restrictive time period of the two Compart- Depending on market conditions, the leverage may ments concerned. be greater. Frequency of net asset value calculation Expected cumulative leverage with the Master Fund: The net asset value will be determined as at each 150% Depending on market conditions, the leverage Banking Day (the “Valuation Day”). may be greater. However, the Board of Directors reserves the right not Method of calculating leverage of the Master Fund to calculate the net asset value or to calculate a net and the Compartment: asset value that cannot be used for trading purposes Sum of the notional amounts. due to closure of one or more markets in which the Fund is invested and/or which it uses to value a ma- Risk management method for the Compartment: terial part of the assets. Absolute value-at-risk approach. For further information, please refer to our website Manager of the Compartment: www.assetmanagement.pictet. PICTET AM S.A. Calculation Day Reference currency of the Master Fund and the Com- The calculation and publication of the net asset value partment: as at a Valuation Day will take place on the Week Day EUR following the relevant Valuation Day (the “Calculation Day”). Cut-off time for receipt of orders Subscription Payment value date for subscriptions and redemp- By 3:00 pm, one Banking Day preceding the relevant tions Valuation Day. Within 3 Week Days following the applicable Valua- tion Day. Redemption By 3:00 pm, one Banking Day preceding the relevant Valuation Day.

PICTET – CORTO EUROPE LONG SHORT

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 1.60% 0.35% 0.22% A *** 1.60% 0.35% 0.22% P − 2.30% 0.35% 0.22% R − 2.60% 0.35% 0.22% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

Fees charged within the Master Fund and met by the Compartment due to its investment in the Master Fund: Management fee: Max 0% Service fee: Max 0.35% Depositary Bank fee: max 0.22% Performance fee: 20% per year of the performance of the net asset value per share, (measured against the High-Water Mark) over the performance of the benchmark index.

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Although the performance fee is invoiced net of fees at the level of the Master Fund, from an economic standpoint, the impact of the above described fee structure is the same as if the performance fee was invoiced by the Master Fund gross of management fees.

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ANNEX 3: BALANCED COMPARTMENT S AND OTHER COMPARTMENT S

This annex will be updated to account for any change in an existing Compartment or when a new Compartment is created.

69. PICTET – PICLIFE

Typical investor profile Compartment is expected to have generally significant The Compartment is an actively managed investment exposure to Swiss assets and be mainly invested vehicle for investors: through UCITS and other UCIs.

› Who wish to invest in the shares and bonds The equity exposure should remain between 30% and of listed companies, as well as in money 50%. market instruments throughout the world. The Compartment may invest up to 20% of its net as- › Who seek a moderate but more stable capi- sets in China onshore securities. It may invest in China tal growth than that through exposure to eq- A Shares, bonds and other debt securities denomi- uities. nated in RMB through (i) the QFII quota granted to an › Whose reference currency is the Swiss franc. entity of the Pictet Group (ii) the RQFII quota granted › Who are willing to bear variations in market to an entity of the Pictet Group and/or (iii) Bond Con- value. nect. It may also invest in China A Shares through the Shanghai-Hong Kong Stock Connect programme, the Investment policy and objectives The objective of this Compartment is to enable inves- Shenzhen-Hong Kong Stock Connect programme tors to benefit from the general investment strategy or/and any similar acceptable securities trading and of Pictet Asset Management S.A., by providing the clearing linked programmes or access instruments opportunity to invest in an overall balanced portfolio which may be available to the Compartment in the fu- that will be broadly inspired by the investment policy ture. The Compartment may also use financial deriva- applicable to the Swiss pension funds. tive instruments on China A Shares. Investments in China may be performed, inter alia, on the China In- The Compartment will mainly offer an exposure to the terbank Bond Market (“CIBM”) directly or through the following asset classes: equities, fixed-income instru- QFII or the RQFII quota granted to the Managers or ments and money market instruments worldwide (in- through Bond Connect. Investments in China may also cluding in emerging countries). be performed on any acceptable securities trading pro- The Compartment will thus mainly invest: grammes which may be available to the Compartment in the future as approved by the relevant regulators › Directly in the securities/asset classes listed from time to time. above and/or The Compartment may also invest in depositary re- › in UCITS and other UCIs (including, without limitation, in other Compartments of the ceipts (such as ADR, GDR, EDR). Fund, pursuant to Article 181 of the 2010 Under exceptional circumstances, if the manager Act as presented in the section “Investment considers this to be in the best interest of the Share- Restrictions”) offering exposure or investing holders, the Compartment may hold up to 100% of in the securities / asset classes listed above, and/or its net assets in liquidities as amongst others cash deposits, money market funds and money market in- Via financial derivatives instruments whose › struments. underliers are the securities/asset classes mentioned in the preceding paragraph or as- The Compartment may also invest in structured prod- sets offering exposure to these securities /as- ucts, such as bonds or other transferable securities set classes. whose returns may for example be linked to the performance of an index, transferable securities or a basket of transferable securities, or an undertaking Despite being a Global Multi Asset strategy, the for collective investment.

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The Compartment may enter into Securities Lending Repurchase Agreements and Reverse Repurchase Agreements and Repurchase and Reverse Repur- Agreements. chase Agreements in order to increase its capital or Risk factors its income or to reduce its costs or risks. The risks listed below are the most relevant risks of The Compartment may conduct credit default swaps. the Compartment. Investors should be aware that other risks may also be relevant to the Compartment. To hedge against certain credit risks for particular Please refer to the section "Risk Considerations" for a bond issuers in the portfolio, the Compartment may full description of these risks. purchase credit default swaps. › Counterparty risk The Compartment may, when it is in its own interest, sell credit default swaps in order to acquire specific › Collateral risk credit risks and/or acquire protection without holding › Credit risk the underlying assets, within the limits defined in the investment restrictions. › Credit rating risk

The Fund may only conclude credit default swap › Currency risk transactions with leading financial institutions spe- › Equity risk cialising in such transactions and in accordance with › Interest rate risk the standardised provisions of the ISDA Master Agreement. › Emerging market risk

The Compartment may use derivative techniques and › QFII risk instruments for efficient management, within the lim- › RQFII risk its specified in the investment restrictions. › Stock Connect risk Due to the fact the Compartment will invest in other › Securities Lending Agreement Risk UCI/UCITS funds, the investor is exposed to a possible duplication of fees and charges. However, when › Repurchase and reverse repurchase agree- the Compartment invests in other UCITS and other ment risk UCIs managed directly or by delegation by the same › Financial derivative instruments risk management company or by any other company with › Risk linked to investments in other UCIs which the management company is linked through common management or control or through a sub- › CIBM risk stantial direct or indirect equity holding, the maxi- › Bond Connect risk mum percentage of the fixed management fees that › Leverage risk may obtained at the level of the target UCITS and other UCIs will be 1.6%, to which, if applicable, a The capital invested may fluctuate up or down, and fee may be added at a maximum of 20% of the per- investors may not recover the entire value of the capi- formance of the net asset value per share. tal initially invested.

Exposure to total return swaps, Securities Lending Risk management method: Agreements, Reverse Repurchase Agreements and Absolute value-at-risk approach. Repurchase Agreements Expected leverage: By way of derogation to the maximum exposure re- 50% ferred to in the general part of the Prospectus, no Depending on market conditions, the leverage may be more than 20% of the Compartment’s net assets will greater. be subject to total return swaps. Leverage calculation method: The expected level of exposure to total return swaps Sum of notional amounts. and Securities Lending Agreements amounts to 5% of the Compartment’s net assets.

The Compartment does not expect to be exposed to

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Managers: to calculate the net asset value or to calculate a net PICTET AM S.A., PICTET AM Ltd asset value that cannot be used for trading purposes due to closure of one or more markets in which the Reference currency of the Compartment: CHF Fund is invested and/or which it uses to value a material part of the assets. Cut-off time for receipt of orders Subscription For further information, please refer to our website By 12:00 noon on the relevant Valuation Day. www.assetmanagement.pictet.

Redemption Calculation Day By 12:00 noon on the relevant Valuation Day. The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day Switch following the relevant Valuation Day (the “ The more restrictive time period of the two Compart- Calculation ”). ments concerned. Day Payment value date for subscriptions and redemp- Frequency of net asset value calculation The net asset value will be determined as at each tions Within 2 Week Days following the applicable Valua- Banking Day (the “Valuation Day”). tion Day. However, the Board of Directors reserves the right not

PICTET – PICLIFE

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I CHF 1 million 1.00% 0.20% 0.05% A *** 1.00% 0.20% 0.05% P − 1.50% 0.20% 0.05% R − 2.00% 0.20% 0.05% S − 0.50% 0.20% 0.05% Z − 0% 0.20% 0.05% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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70. PICTET –MULTI ASSET GLOBAL OPPORTUNITIES

Typical investor profile securities (including defaulted and dis- The Compartment is an actively managed investment tressed securities for up to 10% of its net vehicle for investors: assets). Although the Compartment is not subject to any limit regarding the rating of › Who wish to be exposed to multiple asset the non-investment grade debt securities classes: shares, debt securities, money mar- concerned (except for the 10% maximum in- ket instruments and cash, of different coun- vested in distressed and defaulted securi- tries and economic sectors. ties), the Managers intend to operate the Compartment in a way that non-sovereign › Who are willing to bear variations in market high yield debt securities should not exceed value. 50% of the Compartment’s net assets. Investment policy and objectives › Investments in convertible bonds (other than This Compartment’s objective is to enable investors contingent convertible bonds) may not ex- to benefit from the growth of the financial markets by investing mainly in debt securities of any type (in- ceed 20% of the Compartment’s net assets. cluding but not limited to corporate and sovereign › The Compartment may also invest up to bonds, convertible bonds, inflation-indexed bonds), 20% of its net assets in contingent converti- money market instruments, deposits, equities and ble bonds. equity related securities (such as ADR, GDR, EDR). › The Compartment may invest up to 10% of The Compartment may invest in any country (includ- its net assets in Sukuk al Ijarah, Sukuk al ing emerging countries for up to 50% of its net as- Wakalah, Sukuk al Mudaraba or any other sets), in any economic sector and in any currency. type of Shariah-compliant fixed-income se- However, depending on market conditions, the in- curities, in compliance with the require- vestments or exposure may be focused on one coun- ments of the grand-ducal regulation dated try and/or one economic sector and/or one currency 8 February 2008. and/or in a single asset class. › Investments in Rule 144A securities may The Compartment will however respect the following not exceed 30% of the Compartment’s net limits: assets.

› The Compartment may invest up to 20% of › The Compartment may also invest up to its net asset in China onshore securities. It 20% of its net assets in asset-backed securi- may invest in China A Shares, bonds and ties (bonds whose real assets guarantee the other debt securities denominated in RMB investment) and in debt securitisations through (i) the QFII quota granted to the (such as but not exclusively ABS and MBS) Managers (ii) the RQFII quota granted to the in compliance with article 2 of the grand-du- Managers and/or (iii) Bond Connect. It may cal regulation dated 8 February 2008. also invest in China A Shares through the › The Compartment may also invest up to Shanghai-Hong Kong Stock Connect pro- 10% of its net assets in UCITS and other gramme, the Shenzhen-Hong Kong Stock UCIs in compliance with the provisions of Connect programme and/or any similar ac- Article 41. (1) e) of the 2010 Act, including ceptable securities trading and clearing other Compartments of the Fund pursuant to linked programmes or access instruments Article 181 of the 2010 Act. which may be available to the Compartment in the future. The Compartment may also › The Compartment may also invest in real es- use financial derivative instruments on tate investments trusts (REITs) up to 30% of China A Shares. Investments in Chinese its net assets. bonds may be performed, inter alia, on the The Compartment may invest in structured products, China Interbank Bond Market (“CIBM”) ei- with or without embedded derivatives, such as, in ther directly or through a quota granted to particular, notes, certificates or any other transfera- the Managers or through Bond Connect. ble securities whose returns are linked to, among oth- › The Compartment may be exposed without ers, an index (including indices on volatility), curren- limitation to non-investment grade debt cies, interest rates, transferable securities, a basket

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of transferable securities, or an undertaking for collective investment, in accordance with grand-ducal Reference index: regulation dated 8 February 2008. EONIA Capitalization Index (EUR). Used for performance measurement. In compliance with the grand-ducal regulation dated 8 February 2008, the Compartment may also invest The portfolio composition is not constrained relative in structured products without embedded derivatives, to the benchmark, so the similarity of the Compart- correlated with changes in commodities (including ment’s performance to that of the benchmark may precious metals) and real estate, with cash settle- vary. ment. Exposure to total return swaps, securities lending transactions, Reverse Repurchase Agreements and The underlyings of the structured products with em- Repurchase Agreements bedded derivatives in which the Compartment will in- By way of derogation to the maximum exposure re- vest will be in line with the grand-ducal regulation ferred to in the general part of the Prospectus, no dated 8 February 2008 and the 2010 Act. more than 20% of the Compartment’s net assets will be subject to total return swaps. The Compartment may use derivative techniques and instruments for hedging and/or efficient portfolio By way of derogation to the maximum exposure re- management within the limits specified in the invest- ferred to in the general part of the Prospectus, no ment restrictions. more than 30% of the Compartment’s net assets will be subject to Reverse Repurchase Agreements. Financial derivative instruments may include options, futures, contracts for difference, forward exchange The expected level of exposure to Securities Lending contracts (including non-deliverable forwards), swaps (such as but not limited to Credit Default Swaps and Agreements amounts to 5% of the Compartment’s Total Return Swaps). net assets. The expected level of exposure to total return swaps For diversification of risk, the Compartment may use amounts to 10% of the Compartment’s net assets. financial derivative instruments whose underliers are commodities indexes, in accordance with the law and The Compartment does however not expect to be ex- with ESMA Guidelines. posed to Repurchase Agreements and Reverse Repur- chase Agreements. The Compartment will achieve its investment policy by positioning itself for the growth and/or the volatil- Risk factors ity of the markets. To achieve this management ob- The risks listed below are the most relevant risks of jective, the Compartment may use derivative instru- the Compartment. Investors should be aware that ments whose underlying assets are market volatility, other risks may also be relevant to the Compartment. including, but not exclusively, instruments such as Please refer to the section "Risk Considerations" for a futures contracts and options on volatility futures, full description of these risks. volatility swaps or variance swaps. › Counterparty risk Under exceptional circumstances, if the manager › Collateral risk considers this to be in the best interest of the Share- holders, the Compartment may hold up to 100% of › Credit risk its net assets in liquidities as amongst others cash › Credit rating risk deposits, money market funds (within the above-mentioned 10% limit) and money market instruments. › Currency risk

The Compartment may enter into Securities Lending › Equity risk Agreements and Repurchase and Reverse Repur- › Interest rate risk chase Agreements in order to increase its capital or its income or to reduce its costs or risks. › Emerging market risk › QFII risk › RQFII risk

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› Stock Connect risk and PICTET AMS › High Yield investment risk Reference currency of the Compartment: EUR › Distressed and defaulted debt securities risk Cut-off time for receipt of orders › Securities Lending Agreement Risk Subscription › Repurchase and reverse repurchase agree- By 03:00 p.m. on the relevant Valuation Day. ment risk Redemption › Financial derivative instruments risk By 03:00 p.m. on the relevant Valuation Day.

› Depositary receipts risk Switch › Real Estate Investment Trusts (REITs) risk The more restrictive time period of the two Compart- ments concerned. › ABS and MBS risk Frequency of net asset value calculation › Structured Finance Securities risk The net asset value will be determined as at each › Sukuk risk Banking Day (the “Valuation Day”). › Contingent Convertibles instruments risk However, the Board of Directors reserves the right not to calculate the net asset value or to calculate a net › CIBM risk asset value that cannot be used for trading purposes › Bond Connect Risk due to closure of one or more markets in which the › Leverage risk Fund is invested and/or which it uses to value a material part of the assets. The capital invested may fluctuate up or down, and investors may not recover the entire value of the capi- For further information, please refer to our website tal initially invested. www.assetmanagement.pictet.

Risk management method: Calculation Day Absolute value-at-risk approach. The calculation and publication of the net asset value as at a Valuation Day will take place on the Week Day Expected leverage: following the relevant Valuation Day (the “Calculation 200%. Day”). Depending on market conditions, the leverage may be greater. Payment value date for subscriptions and redemptions Leverage calculation method: Sum of notional amounts. Within 4 Week Days following the applicable Valua- tion Day. Managers: PICTET AM S.A., PICTET AM Ltd, PICTET AME-Italy

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PICTET – MULTI ASSET GLOBAL OPPORTUNITIES

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I EUR 1 million 0.65% 0.35% 0.10% A *** 0.65% 0.35% 0.10% P − 1.35% 0.35% 0.10% R − 2.30% 0.35% 0.10% Z − 0% 0.35% 0.10% IX EUR 1 million 0.90% 0.35% 0.10% PX − 1.90% 0.35% 0.10% RX − 2.50% 0.35% 0.10% ZX − 0% 0.35% 0.10% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

Type of Share Index

Share Classes denominated in EUR EONIA + 3%

Hedged Share Classes denominated in USD LIBOR USD Overnight + 3%

Hedged Share Classes denominated in CHF LIBOR CHF Spot Next + 3%

Hedged Share Classes denominated in GBP LIBOR GBP Overnight + 3%

The performance fee is calculated by reference to the outperformance of the NAV per Share adjusted for subscriptions into and redemptions out of the relevant classes of Shares during the calculation period. No performance fee will be due if the NAV per Share before performance fee turns out to be below the High-Water Mark for the calculation period in question.

The High-Water Mark is defined as the greater of the following two figures:

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For the Shares present into the class at the beginning of the calculation period, performance fee will be calculated by reference to the performance against the High-Water Mark.

Performance fee crystallized in case of redemption is payable at the end of the calculation period even if there is no longer performance fee at that date.

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71. PICTET – GLOBAL DYNAMIC ALLOCATION

Typical investor profile The Compartment may invest in any country (including The Compartment is an actively managed investment ve- emerging countries), in any economic sector and in any hicle for investors: currency. However, depending on market conditions, the investments or exposure may be focused on one country › Who wish to be exposed to multiple asset clas- or on a limited number of countries and/or one eco- ses (equities, debt securities, commodities, real nomic activity sector and/or one currency and/or in a estate, cash and currencies). single asset class. › Who are willing to bear variations in market value. The Compartment will however respect the following limits: Investment policy and objectives › The Compartment may invest in depositary re- The objective of the Compartment is to provide investors ceipts (such as ADR, GDR, EDR) without limita- with a return superior to that of its benchmark index, tion and in real estate investments trusts the USD 3 months ICE LIBOR. (REITs) up to 30% of its net assets. The Compartment is looking to be exposed to, and bene- The Compartment may invest up to 30% of its fit from, the performance of the following asset classes: net assets in China onshore securities. It may debt securities of any type (corporate and sovereign), in- invest in China A Shares, bonds and other debt securities denominated in RMB through (i) the cluding money market instruments, equities, commodi- QFII quota granted to the Managers (ii) the ties (including precious metals), real estate, cash and RQFII quota granted to the Managers and/or currencies. (iii) Bond Connect. It may also invest in China It is understood that the Compartment will not directly A Shares through the Shanghai-Hong Kong Stock Connect programme, Shenzhen-Hong hold property assets or commodities and that, in the Kong Stock Connect programme or/ and any case of indirect investment, the manager will ensure similar acceptable securities trading and clear- that no physical delivery is permitted. ing linked programmes or access instruments which may be available to the Compartment in In order to achieve its objective, the Compartment will mainly invest: the future. The Compartment may also use financial derivative instruments on China A Shares. Investments in China may be per-  directly in the securities/asset classes mentioned formed, inter alia, on the China Interbank Bond in the previous paragraph (except for the com- Market (“CIBM”) directly or through the QFII or modities and real estate asset classes); and/or the RQFII quota granted to the Managers or  in undertakings for collective investment (UCITS through Bond Connect. Investments in China and other UCIs in compliance with the provi- may also be performed on any acceptable secu- sions of Article 41. (1) e) of the 2010 Act), in- rities trading programmes which may be availa- cluding, without limitation, other Compartments ble to the Compartment in the future as ap- of the Fund (pursuant to the provisions of Article proved by the relevant regulators from time to 181 (8) of the Law of 2010) whose main objec- time. tive is to invest in the securities/asset classes listed above; and/or › The Compartment may be exposed to non-investment grade debt securities up to 30% of its  in any transferable securities (such as structured net assets; in addition, it may also be exposed products) linked or offering an exposure to the to distressed and defaulted securities up to performance of the above-mentioned asset clas- 10% of its net assets. ses/securities. › Investments in convertible bonds (other than The proportion of assets devoted to each asset class var- contingent convertible bonds) may not exceed ies over time, and sometimes the Compartment can be 15% of the Compartment’s net assets. exposed to several or only one of the above asset classes.

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› The Compartment may also invest up to 15% of to reduce costs or risks. its net assets in contingent convertible bonds. Due to the fact the Compartment may invest a substan- › The Compartment may invest up to 10% of its tial part of its assets in other UCIs (UCITS and UCIs net assets in Sukuk al Ijarah, Sukuk al Waka- other than UCITS), the investor is exposed to a possible lah, Sukuk al Mudaraba or any other type of duplication of fees and charges. However, when the Shariah-compliant fixed-income securities, in Compartment invests in other UCIs managed directly or compliance with the requirements of the grand- ducal regulation dated 8 February 2008. by delegation by the same management company or by any other company with which the management com- › Investments in Rule 144A Securities may not pany is linked through common management or control exceed 30% of the Compartment’s net assets. or through a substantial direct or indirect equity holding, The Compartment may invest in structured products, the maximum percentage of the fixed management fees with or without embedded derivatives, such as, in par- that may obtained at the level of the target UCIs will be ticular, notes, certificates or any other transferable secu- 1.6%, to which, if applicable, a fee may be added at a rity whose returns are linked to, among others, an index maximum of 20% of the performance of the net asset (including indices on volatility), currencies, interest value per share. rates, transferable securities, a basket of transferable Reference index: securities, or an undertaking for collective investment in ICE LIBOR USD 3M (USD). Used for performance ob- accordance with grand-ducal regulation dated 8 Febru- jective and performance measurement. ary 2008. In compliance with the grand-ducal regulation dated 8 The portfolio composition is not constrained relative to February 2008, the Compartment may also invest in the benchmark, so the similarity of the Compartment’s performance to that of the benchmark may vary. structured products without embedded derivatives, correlated with changes in commodities (including precious Exposure to total return swaps, Securities Lending metals) with cash settlement. Agreements, Reverse Repurchase Agreements and Re- The underlyings of the structured products with embed- purchase Agreements ded derivatives in which the Compartment will invest By way of derogation to the maximum exposure referred will be in line with the grand-ducal regulation dated 8 to in the general part of the Prospectus, no more than February 2008 and the 2010 Act. 20% of the Compartment’s net assets will be subject to total return swaps. The Compartment may use derivative techniques and instruments for hedging and/or efficient portfolio manage- The Compartment does however not expect to be ex- ment within the limits specified in the investment re- posed to total return swaps, Securities Lending Agree- strictions. ments, Repurchase Agreements and Reverse Repur- chase Agreements. Financial derivative instruments may include options, futures, forward exchange contracts, non-deliverable for- Risk factors ward transactions, swaps (such as but not limited to The risks listed below are the most relevant risks of the Credit Default Swaps and Total Return Swaps). Compartment. Investors should be aware that other risks may also be relevant to the Compartment. Please refer Under exceptional circumstances, if the manager con- to the section "Risk Considerations" for a full description siders this to be in the best interest of the Shareholders, of these risks. the Compartment may hold up to 100% of its net assets › Counterparty risk in liquidities as amongst others cash deposits, money market funds and money market instruments. › Collateral risk Credit risk The Compartment may enter into Securities Lending › Agreements and Repurchase and Reverse Repurchase › Credit rating risk Agreements in order to increase its capital or income, or › Currency risk

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› Equity risk Leverage calculation method: Sum of notional amounts. › Interest rate risk Managers: › Emerging market risk PICTET AM Ltd, PICTET AM HK, PICTET AM S.A. › QFII risk Reference currency of the Compartment: › RQFII risk USD

› Stock Connect risk Cut-off time for receipt of orders › Securities Lending Agreement Risk Subscription By 3:00 pm on the Banking Day preceding the relevant › Repurchase and reverse repurchase agreement Valuation Day. risk Redemption › Financial derivative instruments risk By 3:00 pm on the Banking Day preceding the relevant › Risk linked to investments in other UCIs Valuation Day. › CIBM risk Switch The more restrictive time period of the two Compart- › Bond Connect risk ments concerned. › High Yield investment risk Frequency of net asset value calculation › Distressed and defaulted debt securities risk The net asset value will be determined as at each Bank- ing Day (the “Valuation Day”). › Contingent Convertible instruments risk However, the Board of Directors reserves the right not to › Investment restriction risk calculate the net asset value or to calculate a net asset › Sukuk risk value that cannot be used for trading purposes due to closure of one or more markets in which the Fund is in- › Structured Finance Securities risk vested and/or which it uses to value a material part of › Depositary receipts risk the assets. › Real Estate Investment Trusts (REITs) risk For further information, please refer to our website www.assetmanagement.pictet. › Leverage risk Calculation Day The capital invested may fluctuate up or down, and in- The calculation and publication of the net asset value as vestors may not recover the entire value of the capital at a Valuation Day will take place on the Week Day fol- initially invested. lowing the relevant Valuation Day (the “Calculation Risk management method: Day”). Absolute value at risk (VaR). Payment value date for subscriptions and redemptions Expected leverage: Within 3 Week Days following the applicable Valuation 150%. Day. Depending on market conditions, the leverage may be greater.

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PICTET – GLOBAL DYNAMIC ALLOCATION

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 0.65% 0.35% 0.10% A *** 0.65% 0.35% 0.10% P − 1.30% 0.35% 0.10% R − 2.30% 0.35% 0.10% Z − 0% 0.35% 0.10% E USD 1 million 0.275% 0.35% 0.10% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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72. PICTET – GLOBAL DIVERSIFIED PREMIA

Investor type profile In order to achieve its investment objective, the Com- The Compartment is an actively managed investment partment will mainly invest vehicle for investors:  directly in the securities/asset classes above- mentioned (except for commodities where no di-  Who wish to invest in strategies seeking to be rect investments will be made), and/or market neutral over the long term by imple-  in liquid assets in the form of cash deposits and menting long and short exposures in multiple cash equivalents (money market instruments, asset classes, money market UCIs) due to the use of financial  Who are willing to bear variations in market derivative instruments. value. In the pursuit of its investment policy and due to the Investment policy and objectives use of financial derivative instruments, the Compart- The investment objective of the Compartment is to ment may hold a substantial part of its assets in the deliver consistent absolute returns with a low correla- form of cash deposits and cash equivalents (money tion to traditional asset classes. market instruments, money market UCIs).

The Compartment follows strategies diversified across The choice of investments or Compartment’s expo- multiple asset classes (equities, fixed-income, com- sure will neither be limited by geographical area (in- modities, cash and currencies) and diversified across cluding emerging markets), economic sector nor in multiple investment styles and risk factors. terms of currencies in which investments will be denominated. However, depending on financial market The Compartment seeks to be exposed to risk premia, conditions, a particular focus can be placed in a sin- i.e. to sources of risk with a positive expected return. gle country (or some countries) and/or in a single cur- The focus is not on traditional long-only risk premia rency and/or in a single economic sector. like the equity risk premia or the credit risk premia but is rather on alternative sources of risk with a low The Compartment may be exposed to non-investment correlation to traditional asset classes. To achieve grade debt securities; it will not invest in distressed this objective, the Compartment makes an extensive and defaulted securities. The risk contribution of use of long/short investment strategies. Examples of strategies based on non-investment grade instru- those strategies are: ments will remain small with respect to other risk sources.  Carry, the tendency for higher-yielding assets to provide higher returns than lower-yield as- To implement its investment strategies, the Compart- sets, ment will make an extensive use of long/short positions. Traditional long positions are coupled with  Contrarian, the tendency of an asset’s price to (synthetic) long and short positions, which will be revert to its average valuation level following achieved through the use of financial derivative in- significant price movements, struments (amongst others total return swaps, futures  Momentum, the tendency for an asset’s recent and options). relative performance to continue in the future, and For hedging, and for investment purposes, within the limits set out in the chapter” Investment restrictions”  Value, the tendency for relatively cheap assets of the Prospectus, the Compartment may use all to outperform relatively expensive ones. types of financial derivative instruments traded on a The Compartment is not limited to investing along the regulated market and/or over the counter (OTC) pro- above strategies. Other strategies can be added to the vided they are contracted with leading financial insti- discretion of the Investment Manager. tutions specialized in this type of transactions. In particular, the Compartment may take exposure

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through any financial derivative instruments such as factsheets and further information on the portfolio but not limited to warrants, futures, options, swaps will be available. Investors will be able to access, (including but not limited to funded or unfunded to- amongst others, information regarding asset alloca- tal return swaps, interest rate swaps, contracts for tion, risk premia allocation, indices, top holdings and difference, credit default swaps) and forwards on any their weightings. underlying in line with the 2010 Act as well as the As a consequence of this use of financial derivative investment policy of the Compartment, including but instruments for the long and short positions, the not limited to, currencies (including non-deliverable Compartment may have a considerable leverage. forwards), interest rates, transferable securities, basket of transferable securities, indices and/or under- The Compartment may invest in structured products, takings for collective investment. with or without embedded derivatives, such as, in particular, notes, certificates or any other transferable The financial derivative instruments will be used security whose returns are linked to, among others, mainly for investment purposes. They will have the an index (including indices on volatility), currencies, economic effect of financial leverage, which means interest rates, transferable securities, a basket of the Fund will have the potential for greater gains, as transferable securities, or an undertaking for collec- well as the potential for greater losses. Please refer to tive investment in accordance with the 2008 Regula- the section "Risk Considerations" for a full description. tion of the implied risks and the potential impact on performance (see the sections Financial derivative in- In compliance with the 2008 Regulation, the Com- struments risk, and Leverage risk). partment may also invest in structured products without embedded derivatives, correlated with changes in The Compartment may use financial derivative instru- commodities (including precious metals) with cash ments whose underliers are commodities indexes, in settlement. accordance with the law and with ESMA guidelines 2014/937. The underlyings of the structured products with embedded derivatives in which the Compartment will in- The indices to which the portfolio will take exposure vest will be in line with the 2008 Regulation and the may have different rebalancing frequencies, with the Law of 2010. most prevalent rebalancing frequency being monthly. The frequency of the rebalancing does not impact the In addition, the Compartment may invest up to 10% costs linked to gaining exposure to the indices. The of its net assets in UCITS and/or other UCIs, includ- portfolio will pay a fixed swap fee to access the indi- ing other compartments of the Fund pursuant to Arti- ces to the index sponsor (which generally also acts as cle 181 of the 2010 Act. counterparty to the total return swaps). Any index re- The Compartment may enter into securities lending, balancing costs are already priced into the applicable repurchase and reverse repurchase transactions in or- index return or covered by the fixed swap fee to the der to increase its capital or its revenue or to reduce index sponsor. its costs or risks.

In order to determine the index allocation, the Man- The investment process integrates ESG criteria based ager evaluates publicly available information and con- on proprietary and third-party research to evaluate in- ducts proprietary research to identify appropriate risk vestment risks and opportunities. When selecting the premia strategies, by determining their expected risk Compartment’s investments, securities of issuers with and return profile. This index allocation and the indi- low ESG characteristics may be purchased and re- ces to which the Manager takes exposure may change tained in the Compartment’s portfolio. from time to time, depending on the Manager’s anal- Reference index: ysis. ICE BofA SOFR Overnight Rate Index (USD). Used for Investors are invited to consult our website www.as- performance measurement. setmanagement.pictet where the relevant monthly

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The portfolio composition is not constrained relative to Expected leverage: the benchmark, so the similarity of the Compartment’s The expected level of leverage is 800%; under cer- performance to that of the benchmark may vary. tain circumstances, the level of leverage could be higher and reach a maximum value of 1'500%. Exposure to total return swaps, Securities Lending Agreements, Reverse Repurchase Agreements and Re- This may be the case when using foreign exchange purchase Agreements derivatives in order to reduce exposure to a currency By way of derogation to the maximum exposure re- or any other financial derivative to reduce a risk of ferred to in the general part of this Prospectus, no the portfolio (e.g. market, credit or interest rate). For more than 500% of the Compartment’s net assets whilst the transaction will result in a reduction in the will be subject to total return swaps. portfolio risk, it actually increases the Compartment’s The expected level of exposure to total return swaps leverage since netting is not taken into account. amounts to 400% of the Compartment’s net assets. The leverage number stated is a maximum antici- The Compartment does however not expect to be ex- pated level, but the actual amount may differ signifi- posed to Securities Lending Agreements, Repurchase cantly from this. The calculation is a sum of notion- Agreements and Reverse Repurchase Agreements. als and aggregates the absolute sum of all long and short financial derivatives. However, despite the po- Risk Factors tential for large exposures in financial derivative in- The risks listed below are the most relevant risks of the struments, this is not a reflection on volatility, dura- Compartment. Investors should be aware that other tion or market risk for there is no distinction for when risks may also be relevant to the compartment. Please a derivative is being used to generate investment re- refer to the section "Risk Considerations" for a full de- turns or hedge a position in the portfolio to reduce scription of these risks. risk. Due to the high level of expected leverage, the attention of the investor should be emphasized on the › Counterparty risk; risk factor “Leverage risk”. Leverage may increase › Collateral risk; the volatility of the Compartment’s Net Asset Value › Credit risk; and may amplify losses which could become significant and potentially cause a total loss of the net as- › Currency risk; set value in extreme market conditions. The exten- › Equity risk; sive use of financial derivatives instruments may lead › Interest rate risk; to a considerable leverage effect. › Emerging market risk; An example of where the level of leverage can appear to be relatively high would arise when the volatility of › Credit rating risk; financial assets would be low and would thus require › High yield investment risk; more leverage to be taken in the Compartment to › Financial derivative instruments risk; achieve the same amount of risk/returns compared to normal market conditions. › Leverage risk; Method for calculating the leverage: › Commodity price risk; Sum of the notionals. › Volatility risk; Manager: › Concentration risk. PICTET AM S.A. The capital invested may fluctuate downwards as well as upwards, and investors may not recuperate the en- Sub-Manager: tire value of the capital initially invested. PICTET AA SA Reference currency of the Compartment: Method to measure risk: USD Absolute value at risk approach.

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Remittance of orders cannot be used for trading purposes due to closure of Subscription one or more markets in which the Fund is invested By 12.00 am on the relevant Valuation Day. and/or which it uses to value a material part of the assets. Redemption By 12.00 am on the relevant Valuation Day. For further information, please refer to our website Conversion www.assetmanagement.pictet. The most restrictive time period of the two compart- Calculation Day ments concerned. The calculation and publication of the NAV as at a Val- Frequency of NAV calculation uation Day will take place on the Week Day following The NAV will be determined as at each Banking Day the relevant Valuation Day (the “Calculation Day”). (the “Valuation Day”). Payment value date for subscriptions and redemp- However, the Board of Directors reserves the right not tions: Within 2 Week Days of the applicable Valuation Day. to calculate the NAV or to calculate an NAV that

PICTET – GLOBAL DIVERSIFIED PREMIA

Type of Initial min. Fees (max %) * Share Management Service** Depositary Bank I USD 1 million 1% 0.30% 0.10% A *** 1% 0.30% 0.10% P − 2% 0.30% 0.10% R − 3% 0.30% 0.10% Z − 0% 0.30% 0.10% E USD 10 million 1% 0.30% 0.10% ZX - 0% 0.30% 0.10% *Per year of the average net assets attributable to this type of Share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

Performance fee: The Manager will receive a performance fee, accrued as at each Valuation Day, paid yearly, based on the net asset value (NAV), equivalent to 10 % of the performance of the NAV per share, (measured against the High-Water Mark) over the performance of the index described in the below table for each share class, since the last performance fee payment. No performance fee will be payable for X shares.

Type of share classes Index

Share classes denominated in USD and un-hedged share classes LIBOR USD Overnight

Hedged share classes denominated in JPY LIBOR JPY Spot Next

Hedged share classes denominated in CHF LIBOR CHF Spot Next

Hedged share classes denominated in GBP LIBOR GBP Overnight

Hedged share classes denominated in EUR EONIA

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The performance fee is calculated on the basis of the NAV after deduction of all expenses, liabilities, and management fees (but not performance fee), and is adjusted to take account of all subscriptions and redemptions.

The performance fee is calculated by reference to the outperformance of the NAV per share adjusted for subscriptions into and redemptions out of the relevant classes of shares during the calculation period. No performance fee will be due if the NAV per share before performance fee turns out to be below the High-Water Mark for the calculation period in question.

The High-Water Mark is defined as the greater of the following two figures:

› The last highest Net Asset Value per Share on which a performance fee has been paid and;

› The initial NAV per share.

The High-Water Mark will be decreased by the dividends paid to shareholders.

Provision will be made for this performance fee as at each Valuation Day. If the NAV per share decreases during the calculation period, the provisions made in respect of the performance fee will be reduced accordingly. If these provisions fall to zero, no performance fee will be payable.

If the return of the NAV per share (measured against the High-Water Mark) is positive, but the Index return is negative, the calculated performance fee per share will be limited to the return of the NAV per share in order to avoid that performance fee calculation implies that the NAV per share after performance fee be inferior to the High-Water Mark.

For the shares present into the class at the beginning of the calculation period, performance fee will be calculated by reference to the performance against the High-Water Mark.

For the shares subscribed during the calculation period, performance fee will be calculated by reference to the performance from the subscription date to the end of the calculation period. Furthermore, performance fee per share will be capped to the performance fee per share related to the shares present into the class at the beginning of the calculation period.

For the shares redeemed during the calculation period, performance fee is determined based upon the “first in, first out” method where shares bought first are redeemed first, and shares bought last are redeemed last.

Performance fee crystallized in case of redemption is payable at the end of the calculation period even if there is no longer performance fee at that date.

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ANNEX 4: MONEY MARKET COMPARTMENTS

General Provisions

The following provisions will apply to the Compartments qualifying as money market funds within the meaning of the Regulation 2017/1131 on money market funds (the “MMF Regulation”). Unless otherwise provided for in this section, the provisions contained in the main part of the Prospectus apply to the Compartments qualifying as money market funds (“MMF”).

At the date of the Prospectus, the following Compartments qualify as short-term variable net asset value money market funds: › Pictet – Short-Term Money Market CHF; › Pictet – Short-Term Money Market USD; › Pictet – Short-Term Money Market EUR; › Pictet – Short-Term Money Market JPY; › Pictet – Sovereign Short-Term Money Market USD; › Pictet – Sovereign Short-Term Money Market EUR (hereinafter referred to as the “Short-Term VNAV MMF Compartment(s)”)

At the date of the Prospectus, the following Compartments qualify as standard variable net asset value money market funds:

› Pictet – Enhanced Money Market USD; › Pictet – Enhanced Money Market EUR; (hereinafter referred to as the “Standard VNAV MMF Compartment(s)”) Short-Term VNAV MMF Compartment(s) and Standard VNAV MMF Compartment(s)” together referred to as VNAV MMF Compartment(s)

Investors should note that: › The VNAV MMF Compartments are not guaranteed investments; › An investment in a VNAV MMF Compartment is different from an investment in deposits; › The principal invested in a VNAV MMF Compartment is capable of fluctuation; › The Fund does not rely on external support for guaranteeing the liquidity of the VNAV MMF Compart- ments or stabilizing the net asset value per share; › The risk of loss of the principal is to be borne by the Shareholders. › The net asset value per share of the VNAV MMF Compartments shall be calculated and published at least daily on the public section of the website www.assetmanagement.Pictet.

The following information will be made available to investors on a weekly basis on the following website: www.assetmanagement.pictet: › The maturity breakdown of the portfolio of each VNAV MMF Compartment; › The credit profile of the VNAV MMF Compartments; › The weighted average maturity and weighted average life of the VNAV MMF Compartments; › Details of the 10 largest holdings in each VNAV MMF Compartment; › The total value of the assets of each VNAV MMF Compartment; and › The net yield of each VNAV MMF Compartment. The Fund may decide to solicit or finance an external credit rating for any of the VNAV MMF Compartment in which case the Prospectus will be updated at the next available opportunity. As of the date of the present prospectus no

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VNAV MMF Compartment is rated but if a rating is obtained for one or more of the VNAV MMF Compartments, this information will be available on the public section of the website www.assetmanagement.Pictet

The net asset value per share of the VNAV MMF Compartments shall be rounded to the nearest basis point or its equivalent when the net asset value is published in a currency unit.

Valuation of the assets of the VNAV MMF Compartments

The assets held by the VNAV MMF Compartments will be valued on a daily basis as follows: › Liquid assets and money market instruments shall be valued by using the mark-to-market or the mark-to-model method, as appropriate.

› In particular, the value of any cash in hand or on deposit, bills and demand notes and account re- ceivable, prepaid expenses, dividends and interest declared or accrued and not yet obtained, will be constituted by the nominal value of the assets, unless it appears unlikely that this amount will be obtained, in which case the value will be determined after deducting the amount that the board of directors deems appropriate to reflect the true value of these assets.

› Units/shares issued by open-ended type undertakings for collective investment: - on the basis of the last net asset value known by the central administration agent; or - on the basis of the net asset value estimated on the closest date to the compartment’s valuation day.

Specific portfolio rules applicable to the Short-Term VNAV MMF Compartments

Each Short-Term VNAV MMF Compartment shall comply with the following portfolio requirements: › Its portfolio is to have a weighted average maturity of no more than 60 days;

› Its portfolio is to have a weighted average life of no more than 120 days;

› At least 7.5% of its assets are to be comprised of daily maturing assets, Reverse Repurchase Agreements which are able to be terminated by giving prior notice of one working day or cash which is able to be withdrawn by giving prior notice of one working day.

› At least 15% of its assets are to be comprised of weekly maturing assets, Reverse Repurchase Agreements which are able to be terminated by giving prior notice of five working days or cash which is able to be withdrawn by giving prior notice of five working days. Money market instruments and units or shares of other money market funds may be included within the weekly maturing assets up to a limit of 7.5% of its assets provided they are able to be redeemed and settled within five working days.

Specific portfolio rules applicable to the Standard VNAV MMF Compartments

Each Standard VNAV MMF Compartment shall comply with the following portfolio requirements:

› Its portfolio is to have at all times a weighted average maturity of no more than 6 months;

› Its portfolio is to have at all times a weighted average life of no more than 12 months;

› At least 7.5% of its assets are to be comprised of daily maturing assets, Reverse Repurchase Agreements which can be terminated by giving prior notice of one working day or cash which is able to be withdrawn by giving prior notice of one working day.

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› At least 15% of its assets are to be comprised of weekly maturing assets, Reverse Repurchase Agreements which can be terminated by giving prior notice of five working days or cash which is able to be withdrawn by giving prior notice of five working days. Money market instruments and units or shares of other money market funds may be included within the weekly maturing assets up to a limit of 7.5% of its assets provided they are able to be redeemed and settled within five working days.

If those limits are exceeded for reasons beyond the control of the Fund, or as a result of the exercise of subscription or redemption rights, the Fund shall adopt as a priority objective the correction of that situation, taking due account of the interests of its Shareholders.

Internal Credit Quality Assessment Procedure

The Management Company has established, implemented and consistently applies a customised internal credit quality assessment procedure (the “Credit Quality Assessment Procedure”) based on prudent, systematic and continuous assessment methodologies for systematically determining the credit quality of money market instruments, securitizations and asset-backed commercial papers in which a MMF may invest in accordance with the provisions of the MMF Regulation and relevant delegated acts supplementing the MMF Regula- tion. An effective process has been established by the Management Company to ensure that relevant information on the issuer and instrument’s characteristics are obtained and kept up-to-date. The Credit Quality Assessment Procedure is based on systematic credit quality assessment methodologies which are approved by the Management Company. The credit quality assessment methodologies will assess, to the extent possible, (i) the financial condition of the issuer or guarantor (if applicable), (ii) the sources of liquidity of the issuer or guarantor (if applicable), (iii) the ability of the issuer to react to future market-wide or issuer specific events and (iv) the strength of the issuer’s industry within the economy relative to economic trends and the issuer’s competitive position in its industry. The credit quality assessment is carried out by members of a dedicated credit research team or the economic analysis team, with contribution from the Management Company or the delegated investment manager (as relevant) under the supervision and the responsibility of the Management Company. The analyst team is largely organized by sector, and the economic analysis team by region. The Credit Quality Assessment Procedure is submitted to an extensive validation process, with ultimate validation by the Management Company. The credit quality is assessed for each money market instrument, securitizations and asset-backed commercial papers in which a MMF may invest taking into account the issuer of the instrument and the characteristics of the instrument itself. When assessing the credit quality of each issuer and/or instrument, the following criteria may be used: › Quantitative criteria such as: - Bond pricing information; - Pricing of money market instruments relevant to the issuer, instrument or industry sector; - Credit default-swaps pricing information; - Default statistics relating to the issuer, instrument or industry sector; - Financial indices relevant to the geographic location, industry sector or asset class of the issuer or instrument; and Financial information relating to the issuer. › Qualitative criteria such as: - Analysis of any underlying assets;

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- Analysis of any structural aspects of the relevant instruments issued by an issuer; - Analysis of the relevant market(s); - Sovereign analysis; - Analysis of governance risk relating to the issuer; and - Securities-related research relating to the issuer or market sector. › Short-term nature of the money market instruments;

› The asset class of the instrument;

› The type of issuer distinguishing at least the following types of issuers: sovereign, agency, supranational, local authority, financial corporation and non-financial corporation;

› For structured financial instruments, the operational and counterparty risk inherent within the structured financial transaction and, in case of exposure to securitizations, the structure of the securitiza- tion and the credit risk of the underlying assets;

› The liquidity profile of the instrument. When determining the credit quality of an issuer and of an instrument, the Management Company, will ensure that there is no mechanistic over-reliance on external ratings. The Management Company will ensure that the credit quality assessment methodology’s qualitative and quantitative inputs are of a reliable nature using data samples of appropriate size and well-documented. The Credit Quality Assessment based on the abovementioned information will result in an approval or rejection of an issuer and/or instrument. Each accepted issuer and/or instrument will be given a fundamental credit opinion. Both the issuers / investments list and the associated fundamental credit opinion are binding. Additions and exclusions from that list are reviewed on an on-going basis (at least on an annual basis) and in case of material change that could have an impact on the existing assessment of an instrument, a new credit quality assessment will be under- taken. In case an issuer or instrument is removed from the said lists, the portfolio of the relevant MMF may be adjusted if need be. A formal assessment of the Credit Quality Assessment Procedure and methodologies implemented is conducted annually by the Management Company.

Eligible Assets and Investment Restrictions applicable to the VNAV MMF Compartments

I. Each Compartment may exclusively invest in regularly functioning, recognised and the following eligible assets: open to the public;

A. Money Market Instruments that fulfil all of the iv) Money Market Instruments other than following requirements: those dealt in on a regulated market, a. It falls within one of the following catego- if the issue or the issuer of such in- ries: struments are themselves regulated for the purpose of protecting Inves- i) Money Market Instruments admitted tors and savings, and provided that to or dealt in on a regulated market such instruments are: within the meaning of Article 4 of the 1. issued or guaranteed by a central, MiFID Directive; regional or local administration, by

a central bank of an EU Member ii) Money Market Instruments dealt in State, the European Central Bank, on another regulated and regularly the EU or the European Investment functioning market of a Member State that is recognised and open to Bank, a non-EU Member State or, the public; in case of a Federal State, by one of the members making up the iii) Money Market Instruments admitted federation, or by a public interna- to official listing on a stock exchange tional body to which one or more of a state which is not part of the Eu- EU Member States belong; or ropean Union which is regulated and

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2. issued by an undertaking, any se- Stability Mechanism or the European Fi- curities of which are dealt in on nancial Stability Facility. Regulated Markets referred to in a) i), ii) and iii) above; or d. where the Compartment invest in a securitisation or ABCP, it is subject to the requirements laid down in B below. 3. issued or guaranteed by an establishment subject to prudential supervision, in accordance with crite- Notwithstanding point (b) of paragraph 1, ria defined by EU Law, or by an es- Standard VNAV MMFs shall also be allowed to tablishment which is subject to invest in money market instruments with a re- and complies with prudential rules sidual maturity until the legal redemption date considered by the CSSF to be at of less than or equal to 2 years, provided that least as stringent as those laid the time remaining until the next interest rate down by EU Law; or reset date is 397 days or less. For that purpose, floating-rate money-market instruments 4. issued by other bodies belonging to and fixed-rate money-market instruments the categories approved by the hedged by a swap arrangement shall be reset CSSF provided that investments in to a money market rate or index such instruments are subject to investor protection equivalent to that B. laid down in 1,2 and 3 above and provided that the issuer is a com- 1. Eligible securitisation and ABCPs pro- pany whose capital and reserves vided that the securitisation or ABCP is amount to at least EUR sufficiently liquid, has received a favoura- 10,000,000 and which presents ble assessment pursuant to the internal and publishes its annual accounts credit quality assessment procedure es- in accordance with Directive tablished by the Management Company, 2013/34/EU, is an entity which, and is any of the following: within a group of companies which includes one or several listed com- a. a securitisation referred to in Article panies, is dedicated to the financ- 13 of Commission Delegated Regula- ing of the group or is an entity tion (EU) 2015/61; which is dedicated to the financing of securitisation vehicles which b. an ABCP issued by an ABCP pro- benefit from a banking liquidity gramme which: line.

1. is fully supported by a regulated b. it displays one of the following alternative credit institution that covers all li- characteristics: quidity, credit and material dilution risks, as well as ongoing 1. it has a legal maturity at issuance of transaction costs and ongoing pro- 397 days or less; gramme-wide costs related to the ABCP, if necessary to guarantee 2. it has a residual maturity of 397 days or the investor the full payment of less. any amount under the ABCP; c. the issuer of the Money Market Instrument 2. is not a re-securitisation and the and the quality of the Money Market Instru- exposures underlying the securiti- ment have received a favourable assess- sation at the level of each ABCP ment pursuant to the internal credit quality transaction do not include any se- assessment procedure established by the curitisation position; Management Company; This requirement shall not apply to 3. does not include a synthetic secu- Money Market Instruments issued or guaranteed by the EU, a central authority ritisation as defined in point (11) or central bank of an EU Member State, of Article 242 of Regulation (EU) the European Central Bank, the Euro- No 575/2013; pean Investment Bank, the European

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c. a simple, transparent and standard- b. the deposit matures in no more than 12 ised (STS) securitisation, as deter- months; mined in accordance with the criteria and conditions laid down in Articles c. the credit institution has its registered office 20, 21 and 22 of Regulation (EU) in a EU Member State or, where the credit 2017/2402 of the European Parlia- institution has its registered office in a third ment and of the Council, or an STS country, it is subject to prudential rules con- ABCP, as determined in accordance sidered equivalent to those laid down in EU with the criteria and conditions laid Law in accordance with the procedure laid down in Articles 24, 25 and 26 of down in Article 107(4) of Regulation (EU) that Regulation. No 575/2013.

D. Repurchase Agreements provided that all the 2. Each Short-Term VNAV MMF Compart- following conditions are fulfilled: ment may invest in the securitisations or ABCPs provided any of the following con- a. It is used on a temporary basis, for no more ditions is fulfilled, as applicable: than seven working days, only for liquidity management purposes and not for invest- a. the legal maturity at issuance of the ment purposes other than as referred to in securitisations referred to in point 1. point c. below. a. above is 2 years or less and the time remaining until the next interest b. The counterparty receiving assets transferred rate reset date is 397 days or less; by the relevant Compartment as collateral under the repurchase agreement is prohib- b. the legal maturity at issuance or re- ited from selling, investing, pledging or oth- sidual maturity of the securitisations erwise transferring those assets without the or ABCPs referred to in point 1. b. prior consent of the Fund; and c. is 397 days or less; c. The cash received by the relevant Compart- c. the securitisations referred to in ment as part of the repurchase agreement is points 1. a. and c. above are amortis- able to be: ing instruments and have a WAL of 2 years or less. 1. placed on deposits in accordance with C. above; or 3. Each Standard VNAV MMF Compartment may invest in the securitisations or 2. invested in liquid transferable securities ABCPs provided any of the following con- or Money Market Instruments other than ditions is fulfilled, as applicable: those referred to in I. A. above provided that those assets comply with one of the a. the legal maturity at issuance or re- following conditions: sidual maturity of the securitisations and ABCPs referred to in point 1. a, (i) they are issued or guaranteed by the b and c. above is 2 years or less and Union, a central authority or central the time remaining until the next in- bank of an EU Member State, the Eu- terest rate reset date is 397 days or ropean Central Bank, the European In- less; vestment Bank, the European Stability Mechanism or the European Financial b. the securitisations referred to in Stability Facility provided that a fa- points 1. a. and c. above are amor- vourable assessment has been re- tising instruments and have a WAL ceived pursuant to the internal credit of 2 years or less. rating assessment procedure established by the Management Company; C. Deposits with credit institutions provided that all of the following conditions are fulfilled: (ii) they are issued or guaranteed by a central authority or central bank of a a. the deposit is repayable on demand or is able non-EU Member State, provided that a to be withdrawn at any time; favourable assessment has been received pursuant to the internal credit

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rating assessment procedure of the transferable securities or Money Market Management Company. Instruments other than those referred to in I. A. above provided that those assets (iii) Cash received by the relevant Com- comply with one of the following condi- partment as part of the repurchase tions: agreement shall not otherwise be invested in other assets, transferred or (i) they are issued or guaranteed by the otherwise reused. European Union, a central authority or central bank of an EU Member d. Cash received by the relevant Com- State, the European Central Bank, partment as part of the repurchase the European Investment Bank, the agreement does not exceed 10% of European Stability Mechanism or its assets. the European Financial Stability Fa- cility provided that a favourable as- e. The Fund has the right to terminate sessment has been received pursu- the agreement at any time upon giv- ant to the internal credit quality as- ing prior notice of no more than two sessment procedure established by working days. the Management Company;

E. Reverse Repurchase Agreements provided that (ii) they are issued or guaranteed by a all of the following conditions are fulfilled: central authority or central bank of a non-EU Member State, provided that a. the Fund has the right to terminate the a favourable assessment has been agreement at any time upon giving prior no- received pursuant to the internal tice of no more than two working days; credit quality assessment procedure of the Management Company. b. the assets received by the Compartment as The assets received as part of a reverse part of a reverse repurchase agreement repurchase agreement in accordance shall: with the above shall fulfill the diversification requirements described under III. a. viii). 1. be Money Market Instruments that fulfil the requirements set out in I. A. above and not include securitisations and c. The Fund shall ensure that it is able to re- ABCPs; call the full amount of cash at any time on either an accrued basis or a mark-to-market basis. When the cash is recallable at any 2. have a market value which is at all times at least equal to the cash paid time on a mark-to-market basis, the mark- out; to-market value of the reverse repurchase agreement shall be used for the calculation of the Net Asset Value per Share of the rel- 3. not be sold, reinvested, pledged or otherwise transferred; evant Compartment.

F. Units or shares of any other Money Market 4. be sufficiently diversified with a maxi- Fund (“targeted MMF”) provided that all of the mum exposure to a given issuer of 15% following conditions are fulfilled: of the Compartment’s net asset value

except where those assets take the form of Money Market Instruments that fulfil a. no more than 10 % of the assets of the tar- the requirements of III) a) (viii) below. geted MMF are able, according to its fund rules or instruments of incorporation, to be invested in aggregate in units or shares of 5. be issued by an entity that is independ- targeted MMFs. ent from the counterparty and is ex-

pected not to display a high correlation with the performance of the counter- b. the targeted MMF does not hold shares of party; the acquiring Compartment.

the targeted MMF is authorised under the 6. By way of derogation from 1. above, the c. Compartment may receive as part of a MMF Regulation. reverse repurchase agreement liquid

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G. Financial derivative instruments provided that that the total value of such Money they are dealt in on a stock exchange or a Reg- Market Instruments, securitisa- ulated Market or OTC provided that all of the tions and ABCPs held by the rele- following conditions are fulfilled: vant Compartment in each issuing body in which it invests more than (i) the underlying of the financial derivative in- 5 % of its assets does not exceed strument consist of interest rates, foreign 40 % of the value of its assets. exchange rates, currencies or indices representing one of those categories; (iii) The aggregate of all of a Compart- ment's exposures to securitisa- (ii) the financial derivative instrument serves tions and ABCPs shall not exceed only the purpose of hedging the interest 20% of its assets, whereby up to rate or exchange rate risks inherent in other 15% of that Fund's assets may be investments of the Compartment; invested in securitisations and ABCPs that do not comply with (iii) the counterparties to OTC derivative trans- the criteria for the identification actions are institutions subject and belong- of STS securitisations and ABCPs. ing to the categories approved by the CSSF; (iv) The aggregate risk exposure to the (iv) the OTC derivatives are subject to reliable same counterparty of a Compart- and verifiable valuation on a daily basis and ment stemming from OTC deriva- can be sold, liquidated or closed by an off- tive transactions which fulfill the setting transaction at any time at their fair conditions set out in I) G) above value at the Fund's initiative. shall not exceed 5% of the assets of the relevant Compartment. II. Each Compartment may hold ancillary liquid assets. (v) The aggregate amount of cash provided to the same counterparty III. Investment Restrictions of the Fund acting on behalf of a a. Compartment in Reverse Repur- chase Agreements shall not ex- (i) The Fund will invest no more than ceed 15 % of the assets of that 5% of the assets of any Compart- Compartment. ment in Money Market Instru- ments, securitisations and ABCPs (vi) Notwithstanding the individual issued by the same body. The limits laid down in paragraph III) Fund may not invest more than a) i), ii) and iii), the Fund shall 10% of the assets of such Fund not combine, for each Compart- in deposits made with the same ment, any of the following: credit institution, unless the structure of the Luxembourg • investments in Money Market In- banking sector is such that there struments, securitisations and are insufficient viable credit insti- ABCPs issued by, and/or tutions to meet that diversifica- • deposits made with, and/or OTC tion requirement and it is not eco- financial derivative instruments nomically feasible for the Com- giving counterparty risk exposure partment to make deposits in an- to a single body in excess of other EU Member State, in which 15% of that Compartment's as- case up to 15 % of its assets may sets. be deposited with the same credit institution. (vii) The limit of 15% laid down in III) a) vi) above would be increased to (ii) By way of derogation from III. a. a maximum of 20% in Money (i) first paragraph above, a Com- Market Instruments, deposits and partment may invest up to 10% of OTC financial derivative instru- its assets in Money Market Instru- ments of that single body to the ments, securitisations and ABCPs extent the structure of the Luxem- issued by the same body provided bourg financial market would be

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such that there are insufficient vi- Member State and is subject by able financial institutions to meet law, to special public supervision that diversification requirement designed to protect bondholders. and it is not economically feasible In particular, sums deriving from for the Fund to use financial insti- the issue of these bonds must be tutions in other EU Member invested in accordance with the States. law, in assets which, during the whole period of validity of the (viii) Notwithstanding the provisions bonds, are capable of covering outlined in III. a. (i), the Fund is claims attached to the bonds and authorised to invest up to 100% which, in case of failure of the is- of the assets of any Compartment, suer, would be used on a priority in accordance with the principle basis for the repayment of the of risk spreading, in Money Mar- principal and payment of accrued ket Instruments issued or guaran- interest. teed separately or jointly by the EU, the national, regional and lo- If a Compartment invests more cal administrations of the EU than 5% of its assets in the bonds Member States or their central referred to in the above paragraph banks, the European Central and issued by a single issuer, the Bank, the European Investment total value of such investments Bank, the European Investment may not exceed 40% of the value Compartment, the European Sta- of the assets of the Compartment. bility Mechanism, the European Financial Stability Facility, a cen- (x) Notwithstanding the individual tral authority or central bank of a limits laid down in III. a. i) the third country (at the date of this Compartment may invest no more Prospectus, the Member States of than 20 % of its assets in bonds the Organisation for Economic Co- issued by a single credit institution where the requirements set operation and Development (the out in point (f) of Article 10(1) or OECD) and Singapore), the Inter- point (c) of Article 11(1) of Dele- national Monetary Fund, the In- gated Regulation (EU) 2015/61 ternational Bank for Reconstruc- are met, including any possible tion and Development, the Coun- investment in assets referred to in cil of Europe Development Bank, III. a. ix) above. Where a Com- the European Bank for Recon- partment invests more than 5 % struction and Development, the of its assets in the bonds referred Bank for International Settle- to in the above paragraph issued ments, or any other relevant inter- by a single issuer, the total value national financial institution or or- of those investments shall not ex- ganisation to which one or more ceed 60 % of the value of the as- EU Member States belong, pro- sets of the relevant Compartment, vided that such Compartment including any possible investment must hold Money Market Instru- in assets referred to in III. a. ix) ments from at least six different above, respecting the limits set issues by an issuer and the rele- out therein. Companies which are vant Compartment must limit the part of the same group for the investment in Money Market In- purposes of the establishment of struments from the same issue to consolidated accounts, as defined a maximum of 30% of its assets . in accordance with Directive 2013/34/EU or in accordance (ix) The limit laid down in the first with recognised international ac- paragraph of III. a. i) may be of a counting rules, are regarded as a maximum of 10% for certain single body for the purpose of cal- bonds when they are issued by a culating the limits contained in single credit institution which has section III. a. its registered office in an EU

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IV. with Article 58 of the UCITS Di- rective; or a. The Fund may not acquire on behalf of any Compartment more than 10% of Money (ii) invest up to 20% of its assets in other Market Instruments, securitisations and targeted MMFs with a maximum of ABCPs issued by a single body. 30% in aggregate of its assets in targeted MMFs which are not UCITS in b. Paragraph a) above is waived as regards accordance with Article 55 of the Money Market Instruments issued or guar- UCITS Directive, anteed by the EU, national, regional and local administrations of the EU Member Provided that the following conditions are States or their central banks, the European met: Central Bank, the European Investment Bank, the European Investment Fund, the a) the relevant Compartment is marketed European Stability Mechanism, the Euro- solely through an employee savings pean Financial Stability Facility, a central scheme governed by national law and authority or central bank of a third country, which has only natural persons as in- the International Monetary Fund, the Inter- vestors; national Bank for Reconstruction and De- velopment, the Council of Europe Develop- b) the employee savings scheme referred ment Bank, the European Bank for Recon- to above only allows investors to re- struction and Development, the Bank for deem their investment subject to re- International Settlements, or any other rele- strictive redemption terms which are vant international financial institution or or- laid down in national law, whereby re- ganisation to which one or more EU Mem- demptions may only take place in cer- ber States belong. tain circumstances that are not linked to market developments. V.

a. A Compartment may acquire units or e. Short-term MMFs may only invest in units shares of targeted MMFs as defined under or shares of other short-term MMFs. paragraph I. F. provided that, in principle, no more than 10% in total of a Compart- f. Standard MMFs may invest in units or ment's assets be invested in units or shares shares of short-term MMFs and standard of targeted MMFs. A specific Compart- MMFs. ment may be allowed to invest more than 10% of its assets in units of other targeted MMFs in which case it will be explicitly g. Where the targeted MMF is managed, mentioned in its investment policy. whether directly or under a delegation, by the Management Company or by any other b. A Compartment may acquire units or company to which the Management Com- shares of another targeted MMF provided pany is linked by common management or that it represents no more than 5% of that control, or by a substantial direct or indi- Compartment’s assets. rect holding, the Management Company or that other company, is prohibited from c. Any Compartment which is allowed to dero- charging subscription or redemption fees. gate from the first paragraph of item V) a) In respect of a Compartment's investments above may not invest in aggregate more representing 10% or more of its assets in than 17.5% of its assets in units or shares the target MMF linked to the Management of other targeted MMFs. Company as described in the preceding paragraph, the maximum management fee d. By derogation to b) and c) above, any Com- amount that can be charged both to the partment may either: Compartment and to the targeted MMF in which it intends to invest shall be indi- (i) be a feeder MMF investing at least cated in the relevant Annex. The Fund will 85% of its assets in one other single indicate in its annual report the total man- targeted MMF UCITS in accordance agement fees charged both to the relevant Compartment and to the target MMF in

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which such Compartment has invested dur- assets of the Compartment for the purposes of veri- ing the relevant period. fying the minimum threshold of the net assets imposed by the Luxembourg Law. h. The underlying investments held by the targeted MMF in which a Compartment in- VI. In addition, the Compartment will not: vests do not have to be considered for the purpose of the investment restrictions set a. invest in assets other than those re- forth under III. a. above. ferred to under I. above;

i. Notwithstanding the foregoing, a Compart- b. short sale Money Market Instruments, ment may subscribe, acquire and/or hold securitisations, ABCPs and units or securities to be issued or issued by one or shares of other short-term Money Mar- more Compartment(s) qualifying as MMF ket Funds; Compartment without the Fund being subject to the requirements of the Law of 10 c. take direct or indirect exposure to eq- August 1915 on commercial companies, as uity or commodities, including via de- amended, with respect to the subscription, rivatives, certificates representing acquisition and/or the holding by a com- them, indices based on them, or any pany of its own shares, under the condition other means or instrument that would however that: give an exposure to them.

1. the targeted MMF Compartment does not, in turn, d. enter into securities lending agree- invest in the relevant Compartment invested in this ments or securities borrowing agree- targeted MMF Compartment; and ments, or any other agreement that would encumber the assets of the 2. no more than 10% of the assets that the targeted Compartment. MMFs whose acquisition is contemplated may be invested in units of other MMFs; and e. borrowing and lending cash.

3. voting rights, if any, attaching to the shares of the Each Compartment must ensure an adequate spread of targeted MMF Compartment are suspended for as investment risks by sufficient diversification. long as they are held by the Compartment concerned and without prejudice to the appropriate pro- VII. The Compartment will in addition comply with cessing in the accounts and the periodic reports; such further restrictions as may be required and by the regulatory authorities in which the Shares are marketed. 4. in any event, for as long as these securities are held by the Compartment, their value will not be taken into consideration for the calculation of the net

Additional information on Repurchase Agreements and Reverse Repurchase Agreements

Repurchase Agreements

Any VNAV MMF Compartment may enter into Repurchase Agreements for liquidity management purposes in accordance with the abovementioned investment restrictions.

A repurchase agreement is an agreement at the conclusion of which the Fund is required to repurchase the assets sold and the counterparty must relinquish the asset held.

No more than 10% of a VNAV MMF Compartment’s net assets will be subject to Repurchase Agreements, except as otherwise provided in the relevant Annex of the VNAV MMF Compartments. Where a VNAV MMF Compartment enters into Repurchase Agreements, the expected proportion of such Compartment’s net assets that could be subject to such agreement will be set out in the Annex of the relevant VNAV MMF Compartment.

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The Fund may enter into Repurchase Agreements with counterparties (i) that are subject to prudential supervision rules that the CSSF deems equivalent to those required under the European Law and (ii) whose resources and financial soundness are adequate according to an analysis of the counterparties solvency conducted by the Pictet Group.

The Fund will monitor the market value of each transaction daily to ensure that it is secured in an appropriate manner and will make a margin call if need be.

The collateral received in the context of Repurchase Agreements will be held by the Depositary.

No haircut will be applied to the cash received as collateral in the context of Repurchase Agreements.

All revenue from Repurchase Agreements minus any minor direct and indirect operating costs/fees owed to the De- positary Bank and/or Banque Pictet & Cie S.A., acting as agent for Repurchase Agreements performed by the for the VNAV MMF Compartments (hereinafter the “Agent”) (not exceeding 30% of the gross revenue arising from the Re- purchase Agreements), shall be payable to the relevant VNAV MMF Compartment.

Fixed operating fees charged per transaction may be payable to the counterparty to the repurchase agreement, the Depositary Bank and/or the Agent.

Details of the direct and indirect operational fees/costs arising from Repurchase Agreements will be included in the semi-annual and annual reports of the Fund.

Reverse Repurchase Agreements

Any VNAV MMF Compartment may enter into reverse repurchase agreement for investment purposes.

A reverse repurchase agreement is an agreement at the conclusion of which the counterparty is required to repurchase the assets sold and the Fund must relinquish the asset held.

No more than 100% of a VNAV MMF Compartment’s net assets will be subject to Reverse Repurchase Agreements, except as otherwise provided in the relevant Annex of the VNAV MMF Compartment. Where a VNAV MMF Compart- ment enters into Reverse Repurchase Agreements, the expected proportion of such Compartment’s net assets that could be subject to such agreement will be set out in the Annex of the relevant VNAV MMF Compartment.

The Fund may enter into Reverse Repurchase Agreements with counterparties (i) that are subject to prudential supervision rules that the CSSF deems equivalent to those required under the European Law and (ii) whose resources and financial soundness are adequate according to an analysis of the counterparties solvency conducted by the Pic- tet Group.

The Fund, on behalf of the VNAV MMF Compartments, will only accept as collateral assets complying with the abovementioned investment restrictions.

The collateral received in the context of Reverse Repurchase Agreements will be held by the Depositary.

Haircut

The following haircuts for collateral are applied by the Management Company (the Management Company reserves the right to vary this policy at any time). In case of a significant change of the market value of the collateral, the relevant haircut levels will be adapted accordingly.

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Eligible Collateral Minimum haircut

Cash 0%

Liquid Bonds issued or guaranteed by the EU, a central authority or central bank of an EU Member State or a third country, the European Central Bank, the European Investment Bank, the European Stability Mechanism or the 0.5% European Financial Stability Facility provided a favourable assessment has been received.

Non-financial corporate bonds qualifying as money market instruments 1%

All revenue from Reverse Repurchase Agreements minus any minor direct and indirect operating costs/fees owed to the Depositary Bank and/or Banque Pictet & Cie S.A. (not exceeding 30% of the gross revenue arising from the Re- purchase Agreements), shall be payable to the relevant VNAV MMF Compartment.

Fixed operating fees charged per transaction may be payable to the counterparty to the reverse repurchase agreement, the Depositary Bank and/or Banque Pictet & Cie S.A.

Details of the direct and indirect operational fees/costs arising from Reverse Repurchase Agreements will be included in the semi-annual and annual reports of the Fund.

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73. PICTET – SHORT-TERM MONEY MARKET CHF

The Compartment qualifies as a “Short-Term Variable The investment process integrates ESG criteria based on Net Asset Value Money Market Fund” in accordance proprietary and third-party research to evaluate invest- with the MMF Regulation. ment risks and opportunities. When selecting the Com- partment’s investments, securities of issuers with low Typical investor profile ESG characteristics may be purchased and retained in The Compartment is an actively managed investment ve- the Compartment’s portfolio. hicle for investors: › Who wish to invest in high quality short-term Reference index: fixed-income securities. FTSE CHF 1-Month Eurodeposit (CHF). Used for performance measurement. › Who are averse to risk. Investment policy and objectives The portfolio composition is not constrained relative to The Compartment’s objective is to offer investors a high the benchmark, so the similarity of the Compartment’s level of protection of their capital denominated in Swiss performance to that of the benchmark may vary. francs and to provide a return in line with money market Exposure to Reverse Repurchase Agreements and Re- rates, while having a high level of liquidity and observ- purchase Agreements ing a policy of risk spreading. The Compartment does not expect to be exposed to Re- To fulfil this objective, the Compartment invests in purchase Agreements and Reverse Repurchase Agree- money market instruments and in deposits that meet ments. the applicable criteria set in the MMF Regulation. Risk factors The reference currency of the Compartment is not nec- The risks listed below are the most relevant risks of the essarily identical to the Compartment’s investment cur- Compartment. Investors should be aware that other risks rencies. Financial derivative instruments will be used to may also be relevant to the Compartment. Please refer systematically hedge the exchange rate risk inherent in to the section "Risk Considerations" for a full description the investments of the Compartment against the Com- of these risks. partment’s reference currency. › Counterparty risk Investments will be made in money market instruments (i) which have received a favourable assessment pursu- › Collateral risk ant to the Management Company internal credit quality › Credit risk assessment procedure and (ii) issued by issuers that › Credit rating risk have a minimum rating of A2 and/or P2 as defined by each of the leading rating agencies or when there is no › Interest rate risk official rating system, in securities with identical quality › Repurchase and reverse repurchase agreement criteria. risk

In addition, the Compartment may invest up to 10% of › Financial derivative instruments risk its net assets in shares or units of other short-term The capital invested may fluctuate up or down, and in- money market funds within the meaning of the MMF vestors may not recover the entire value of the capital Regulation. initially invested. The Compartment may enter into Repurchase Agree- Risk management method: ments for liquidity management purposes and into Re- Commitment approach. verse Repurchase Agreements.

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Managers: (the “Valuation Day”). PICTET AM S.A., PICTET AM Ltd However, the Board of Directors reserves the right not to Reference currency of the Compartment: calculate the NAV or to calculate a NAV that cannot be CHF used for trading purposes due to closure of one or more Cut-off time for receipt of orders markets in which the Fund is invested and/or which it Subscription uses to value a material part of the assets. By 1:00 pm on the relevant Valuation Day. For further information, please refer to our website Redemption www.assetmanagement.pictet. By 1:00 pm on the relevant Valuation Day. Calculation Day Switch The calculation and publication of the NAV as at a Valu- The more restrictive time period of the two compart- ation Day will take place on the Valuation Day con- ments concerned. cerned (the “Calculation Day”).

Frequency of NAV calculation Payment value date for subscriptions and redemptions The NAV will be determined as at each Banking Day The Week Day following the applicable Valuation Day.

PICTET – SHORT-TERM MONEY MARKET CHF

Type of Initial min. Fees (max %) * share Management Service** Depositary Bank I CHF 1 million 0.15% 0.05% 0.05% A *** 0.15% 0.05% 0.05% P − 0.18% 0.05% 0.05% R − 0.25% 0.05% 0.05% Z − 0% 0.05% 0.05% J CHF 50 million 0.10% 0.05% 0.05% *Per year of the average net assets attributable to this type of share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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74. PICTET – SHORT-TERM MONEY MARKET USD investment risks and opportunities. When selecting the Compartment’s investments, securities of issuers with The Compartment qualifies as a “Short-Term Variable low ESG characteristics may be purchased and retained Net Asset Value Money Market Fund” in accordance in the Compartment’s portfolio. with the MMF Regulation. Reference index: Typical investor profile FTSE USD 1-Month Eurodeposit (USD). Used for perfor- The Compartment is an actively managed investment ve- mance measurement. hicle for investors:

› Who wish to invest in high quality short-term The portfolio composition is not constrained relative to fixed-income securities. the benchmark, so the similarity of the Compartment’s performance to that of the benchmark may vary. › Who are averse to risk. Investment policy and objectives Exposure to Reverse Repurchase Agreements and Re- The Compartment’s objective is to offer investors a high purchase Agreements The Compartment does not expect to be exposed to Re- level of protection of their capital denominated in US verse Repurchase Agreements and Repurchase Agree- dollars and to provide a return in line with money mar- ments. ket rates, while having a high level of liquidity and observing a policy of risk spreading. Risk factors The risks listed below are the most relevant risks of the To fulfil this objective, the Compartment invests in money market instruments and in deposits that meet Compartment. Investors should be aware that other risks the applicable criteria set in the MMF Regulation. may also be relevant to the Compartment. Please refer to the section "Risk Considerations" for a full description The reference currency of the Compartment is not nec- of these risks. essarily identical to the Compartment’s investment cur- › Counterparty risk rencies. Financial derivative instruments will be used to › Collateral risk systematically hedge the exchange rate risk inherent in the investments of the Compartment against the Com- › Credit risk partment’s reference currency. › Credit rating risk Investments will be made in money market instruments › Interest rate risk (i) which have received a favourable assessment pursu- › Repurchase and reverse repurchase agreement ant to the Management Company internal credit quality risk assessment procedure and (ii) issued by issuers that have a minimum rating of A2 and/or P2 as defined by › Financial derivative instruments risk each of the leading rating agencies or when there is no The capital invested may fluctuate up or down, and in- official rating system, in securities with identical quality vestors may not recover the entire value of the capital criteria. initially invested.

In addition, the Compartment may invest up to 10% of Risk management method: its net assets in shares or units of other short-term Commitment approach money market funds within the meaning of the MMF Managers: Regulation. PICTET AM S.A., PICTET AM Ltd The Compartment may enter into Repurchase Agree- Reference currency of the Compartment: ments for liquidity management purposes and into Re- USD verse Repurchase Agreements. Cut-off time for receipt of orders The investment process integrates ESG criteria based on Subscription proprietary and third-party research to evaluate By 1:00 pm on the relevant Valuation Day.

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Redemption markets in which the Fund is invested and/or which it By 1:00 pm on the relevant Valuation Day. uses to value a material part of the assets.

Switch For further information, please refer to our website The more restrictive time period of the two compart- www.assetmanagement.pictet. ments concerned. Calculation Day Frequency of NAV calculation The calculation and publication of the NAV as at a Valu- The NAV will be determined as at each Banking Day ation Day will take place on the Valuation Day con- (the “Valuation Day”). cerned (the “Calculation Day”).

However, the Board of Directors reserves the right not to Payment value date for subscriptions and redemptions calculate the NAV or to calculate a NAV that cannot be The Week Day following the applicable Valuation Day. used for trading purposes due to closure of one or more

PICTET – SHORT-TERM MONEY MARKET USD

Type of Initial min. Fees (max %) * share Management Service** Depositary Bank I USD 1 million 0.15% 0.10% 0.05% A *** 0.15% 0.10% 0.05% P − 0.30% 0.10% 0.05% R − 0.60% 0.10% 0.05% Z − 0% 0.10% 0.05% J USD 50 million 0.10% 0.10% 0.05% *Per year of the average net assets attributable to this type of share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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75. PICTET – SHORT-TERM MONEY MARKET EUR

The Compartment qualifies as a “Short-Term Variable investment risks and opportunities. When selecting the Net Asset Value Money Market Fund” in accordance Compartment’s investments, securities of issuers with with the MMF Regulation. low ESG characteristics may be purchased and retained in the Compartment’s portfolio. Typical investor profile The Compartment is an actively managed investment ve- Reference index: hicle for investors: FTSE EUR 1-Month Eurodeposit (EUR). Used for performance measurement. › Who wish to invest in high quality short-term

fixed-income securities. The portfolio composition is not constrained relative to › Who are averse to risk. the benchmark, so the similarity of the Compartment’s Investment policy and objectives performance to that of the benchmark may vary. The Compartment’s objective is to offer investors a high level of protection of their capital denominated in euros Exposure to Reverse Repurchase Agreements and Re- and to provide a return in line with money market rates, purchase Agreements while having a high level of liquidity and observing a The Compartment does not expect to be exposed to Re- policy of risk spreading. purchase Agreements and Reverse Repurchase Agree- ments. To fulfil this objective, the Compartment invests in money market instruments and in deposits that meet Risk factors the applicable criteria set in the MMF Regulation. The risks listed below are the most relevant risks of the Compartment. Investors should be aware that other risks The reference currency of the Compartment is not nec- may also be relevant to the Compartment. Please refer essarily identical to the Compartment’s investment cur- to the section "Risk Considerations" for a full description rencies. Financial derivative instruments will be used to of these risks. systematically hedge the exchange rate risk inherent in the investments of the Compartment against the Com- › Counterparty risk partment’s reference currency. › Collateral risk Investments will be made in money market instruments › Credit risk (i) which have received a favourable assessment pursuant to the Management Company internal credit quality › Credit rating risk assessment procedure and (ii) issued by issuers that › Interest rate risk have a minimum rating of A2 and/or P2 as defined by › Repurchase and reverse repurchase agreement each of the leading rating agencies or when there is no risk official rating system in securities with identical quality › Financial derivative instruments risk criteria. The capital invested may fluctuate up or down, and in- In addition, the Compartment may invest up to 10% of vestors may not recover the entire value of the capital its net assets in shares or units of other short-term initially invested. money market funds within the meaning of the MMF Regulation. Risk management method: Commitment approach. The Compartment may enter into Repurchase Agree- ments for liquidity management purposes and into Re- Managers: verse Repurchase Agreements. PICTET AM S.A., PICTET AM Ltd

The investment process integrates ESG criteria based on proprietary and third-party research to evaluate

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Reference currency of the Compartment: used for trading purposes due to closure of one or more EUR markets in which the Fund is invested and/or which it uses to value a material part of the assets. Cut-off time for receipt of orders Subscription For further information, please refer to our website By 1:00 pm on the relevant Valuation Day. www.assetmanagement.pictet.

Redemption Calculation Day By 1:00 pm on the relevant Valuation Day. The calculation and publication of the NAV as at the Switch Valuation Day will take place on the Valuation Day con- The more restrictive time period of the two compart- cerned (the “Calculation Day”). ments concerned. Payment value date for subscriptions and redemptions Frequency of NAV calculation The Week Day following the applicable Valuation Day. The NAV will be determined as at each Banking Day (the “Valuation Day”).

However, the Board of Directors reserves the right not to calculate the NAV or to calculate a NAV that cannot be

PICTET – SHORT-TERM MONEY MARKET EUR

Type of Initial min. Fees (max %) * share Management Service** Depositary Bank I EUR 1 million 0.15% 0.10% 0.05% A *** 0.15% 0.10% 0.05% P − 0.30% 0.10% 0.05% R − 0.60% 0.10% 0.05% Z − 0% 0.10% 0.05% J EUR 50 million 0.10% 0.10% 0.05% *Per year of the average net assets attributable to this type of share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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76. PICTET – SHORT-TERM MONEY MARKET JPY

The Compartment qualifies as a “Short-Term Variable Compartment’s investments, securities of issuers with Net Asset Value Money Market Fund” in accordance low ESG characteristics may be purchased and retained with the MMF Regulation. in the Compartment’s portfolio.

Typical investor profile Reference index: The Compartment is an actively managed investment ve- FTSE JPY 1-Month Eurodeposit (JPY). Used for perfor- hicle for investors: mance measurement.

Investment policy and objectives Exposure to Reverse Repurchase Agreements and Re- The Compartment’s objective is to offer investors a high purchase Agreements level of protection of their capital denominated in Japa- The Compartment does not expect to be exposed to Re- nese yen and to provide a return in line with money mar- purchase Agreements and Reverse Repurchase Agree- ket rates, while having a high level of liquidity and ob- ments. serving a policy of risk spreading. Risk factors To fulfil this objective, the Compartment invests in The risks listed below are the most relevant risks of the money market instruments and in deposits that meet Compartment. Investors should be aware that other risks the applicable criteria set in the MMF Regulation. may also be relevant to the Compartment. Please refer The reference currency of the Compartment is not nec- to the section "Risk Considerations" for a full description essarily identical to the Compartment’s investment cur- of these risks. rencies. Financial derivative instruments will be used to › Counterparty risk systematically hedge the exchange rate risk inherent in › Collateral risk the investments of the Compartment against the Com- partment’s reference currency. › Credit risk

Investments will be made in money market instruments › Credit rating risk (i) which have received a favourable assessment pursu- › Interest rate risk ant to the Management Company internal credit quality › Repurchase and reverse repurchase agreement assessment procedure and (ii) issued by issuers that risk have a minimum rating of A2 and/or P2 as defined by each of the leading rating agencies or when there is no › Financial derivative instruments risk official rating system in securities with identical quality The capital invested may fluctuate up or down, and in- criteria. vestors may not recover the entire value of the capital In addition, the Compartment may invest up to 10% of initially invested. its net assets in shares or units of other money market Risk management method: funds within the meaning of the MMF Regulation. Commitment approach.

The Compartment may enter into Repurchase Agree- Managers: ments for liquidity management purposes and into Re- PICTET AM S.A., PICTET AM Ltd verse Repurchase Agreements. Reference currency of the Compartment: The investment process integrates ESG criteria based on JPY proprietary and third-party research to evaluate investment risks and opportunities. When selecting the

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Cut-off time for receipt of orders For further information, please refer to our website Subscription www.assetmanagement.pictet. By 1:00 pm on the relevant Valuation Day. Calculation Day Redemption The calculation and publication of the NAV as at a Valu- By 1:00 pm on the relevant Valuation Day. ation Day will take place on the Valuation Day con- Switch cerned (the “Calculation Day”). The more restrictive time period of the two compart- Payment value date for subscriptions and redemptions ments concerned. Within 2 Week Days following the applicable Valuation Frequency of NAV calculation Day. For this purpose, only Week Days on which the in- The NAV will be determined as at each Banking Day terbank settlement system is operational in JPY will be (the “Valuation Day”). taken into consideration.

However, the Board of Directors reserves the right not to calculate the NAV or to calculate a NAV that cannot be used for trading purposes due to closure of one or more markets in which the Fund is invested and/or which it uses to value a material part of the assets.

PICTET – SHORT-TERM MONEY MARKET JPY

Type of Initial min. Fees (max %) * share Management Service** Depositary Bank I JPY 1 billion 0.15% 0.10% 0.05% A *** 0.15% 0.10% 0.05% P − 0.30% 0.10% 0.05% R − 0.60% 0.10% 0.05% Z − 0% 0.10% 0.05% J JPY 5 billion 0.10% 0.10% 0.05% *Per year of the average net assets attributable to this type of share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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77. PICTET – SOVEREIGN SHORT-TERM MONEY MARKET USD

The Compartment qualifies as a “Short-Term Variable the Board of Directors will decide on acquiring Net Asset Value Money Market Fund” in accordance securities with identical quality criteria; with the MMF Regulation. The reference currency of the Compartment is not nec- Typical investor profile essarily identical to the Compartment’s investment cur- The Compartment is an actively managed investment ve- rencies. Financial derivative instruments will be used to hicle for investors: systematically hedge the exchange rate risk inherent in the investments of the Compartment against the Com- › Who wish to invest in short-term fixed-income partment’s reference currency. securities. In addition, the Compartment may invest up to 10% of › Who are averse to risk. its net assets in shares or units of other short-term Investment policy and objectives money market funds within the meaning of the MMF The investment objective of the Compartment is to offer Regulation. investors the opportunity to invest in a vehicle that preserves their capital denominated in US dollars and aims The Compartment may enter into Repurchase Agree- at stability of value while The investment objective of ments for liquidity management purposes and into Re- the Compartment is to offer investors the opportunity to verse Repurchase Agreements. invest in a vehicle that preserves their capital denomi- The investment process integrates ESG criteria based on nated in US dollars and aims at stability of value while proprietary and third-party research to evaluate invest- obtaining a return in line with money market rates, hav- ment risks and opportunities. When selecting the Com- ing a high level of liquidity and observing a policy of risk partment’s investments, securities of issuers with low spreading. ESG characteristics may be purchased and retained in The investment process integrates ESG criteria, using the Compartment’s portfolio. proprietary and third-party information sources to evalu- Reference index: ate investment risks and opportunities. US GENERIC GOVT 1 MONTH. Used for performance obtaining a return in line with money market rates, hav- measurement. ing a high level of liquidity and observing a policy of risk The portfolio composition is not constrained relative to spreading. the benchmark, so the similarity of the Compartment’s To fulfil this objective, the Compartment invests its as- performance to that of the benchmark may vary. sets in deposits and in money market instruments that Exposure to Reverse Repurchase Agreements and Re- meet the applicable criteria set in the MMF Regulation. purchase Agreements Money market instruments must: The Compartment does not expect to be exposed to Re- purchase Agreements and Reverse Repurchase Agree- › be issued or guaranteed by a government or pub- ments. lic corporation in the OECD or in Singapore or by an international public organisation that includes Risk factors Switzerland or a Member State of the European The risks listed below are the most relevant risks of the Union among its members; Compartment. Investors should be aware that other risks › have received a favourable assessment pursuant may also be relevant to the Compartment. Please refer to the Management Company internal credit qual- to the section "Risk Considerations" for a full description ity assessment procedure. of these risks. have a minimum rating equivalent to A2 and/or › › Counterparty risk P2, as defined by each of the recognised rating agencies. When there is no official rating system, › Collateral risk

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› Credit risk Redemption By 1:00 pm on the relevant Valuation Day. › Credit rating risk › Interest rate risk Switch The more restrictive time period of the two compart- › Repurchase and reverse repurchase agreement ments concerned. risk Frequency of NAV calculation › Financial derivative instruments risk The NAV will be determined as at each Banking Day The capital invested may fluctuate up or down, and in- (the “Valuation Day”). vestors may not recover the entire value of the capital However, the Board of Directors reserves the right not to initially invested. calculate the NAV or to calculate a NAV that cannot be Risk management method: used for trading purposes due to closure of one or more Commitment approach. markets in which the Fund is invested and/or which it uses to value a material part of the assets. Managers: For further information, please refer to our website PICTET AM S.A., PICTET AM Ltd www.assetmanagement.pictet. Reference currency of the Compartment: USD Calculation Day The calculation and publication of the NAV as at a Valu- Cut-off time for receipt of orders ation Day will take place on the Valuation Day con- Subscription cerned (the “Calculation Day”). By 1:00 pm on the relevant Valuation Day. Payment value date for subscriptions and redemptions The Week Day following the applicable Valuation Day.

PICTET – SOVEREIGN SHORT-TERM MONEY MARKET USD

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78. PICTET-SOVEREIGN SHORT-TERM MONEY MARKET EUR

The Compartment qualifies as a “Short-Term Variable Regulation. Net Asset Value Money Market Fund” in accordance The Compartment may enter into Repurchase Agree- with the MMF Regulation. ments for liquidity management purposes and Reverse Typical investor profile Repurchase Agreements. The Compartment is an actively managed investment ve- The investment process integrates ESG criteria based on hicle for investors: proprietary and third-party research to evaluate invest- › Who wish to invest in short-term fixed-income ment risks and opportunities. When selecting the Com- securities. partment’s investments, securities of issuers with low › Who are averse to risk. ESG characteristics may be purchased and retained in the Compartment’s portfolio. Investment policy and objectives The investment objective of the Compartment is to offer Reference index: investors the opportunity to invest in a vehicle that pre- EUR GERMAN SOVEREIGN 1M. Used for performance serves their capital denominated in euros and aims at measurement. stability of value while obtaining a return in line with The portfolio composition is not constrained relative to money market rates, having a high level of liquidity and the benchmark, so the similarity of the Compartment’s observing a policy of risk spreading. performance to that of the benchmark may vary. To fulfil this objective the Compartment invests its assets in deposits and in money market instruments that Exposure to Reverse Repurchase Agreements and Re- purchase Agreements meet the criteria set in the MMF Regulation. The Compartment does not expect to be exposed to Re- Money market instruments must: purchase Agreements and Reverse Repurchase Agree- › be issued or guaranteed by a government [or ments. public corporation] in the OECD or in Singapore Risk factors or by an international public organisation that in- The risks listed below are the most relevant risks of the cludes Switzerland or a Member State of the Eu- Compartment. Investors should be aware that other risks ropean Union among its members; may also be relevant to the Compartment. Please refer › have received a favourable assessment pursuant to the section "Risk Considerations" for a full description to the Management Company internal credit of these risks. quality assessment procedure. › Counterparty risk › have a minimum rating equivalent to A2 and/or P2, as defined by each of the recognised rating › Collateral risk agencies. When there is no official rating system, Credit risk the Board of Directors will decide on acquiring › securities with identical quality criteria; › Credit rating risk The reference currency of the Compartment is not nec- › Interest rate risk essarily identical to the Compartment’s investment cur- › Repurchase and reverse repurchase agreement rencies. Financial derivative instruments will be used to risk systematically hedge the exchange rate risk inherent in the investments of the Compartment against the Com- › Financial derivative instruments risk partment’s reference currency. The capital invested may fluctuate up or down, and in- In addition, the Compartment may invest up to 10% of vestors may not recover the entire value of the capital its net assets in shares or units of other short-term initially invested. money market funds within the meaning of the MMF

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Risk management method: The NAV will be determined as at each Banking Day Commitment approach. (the “Valuation Day”).

Managers: However, the Board of Directors reserves the right not to PICTET AM S.A., PICTET AM Ltd calculate the NAV or to calculate a NAV that cannot be used for trading purposes due to closure of one or more Reference currency of the Compartment: markets in which the Fund is invested and/or which it EUR uses to value a material part of the assets. Cut-off time for receipt of orders For further information, please refer to our website Subscription www.assetmanagement.pictet. By 1:00 pm on the relevant Valuation Day. Calculation Day Redemption The calculation and publication of the NAV as at a Valu- By 1:00 pm on the relevant Valuation Day. ation Day will take place on the Valuation Day con- Switch cerned (the “Calculation Day”). The more restrictive time period of the two compartments concerned. Payment value date for subscriptions and redemptions The Week Day following the applicable Valuation Day. Frequency of NAV calculation

PICTET-SOVEREIGN SHORT-TERM MONEY MARKET EUR

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79. PICTET-ENHANCED MONEY MARKET USD and/or standard money market funds within the meaning of the MMF Regulation, including other Compartments The Compartment qualifies as a “Standard Variable Net of the Fund pursuant to Article 181 of the 2010 Act Asset Value Money Market Fund” in accordance with the MMF Regulation. The Compartment may use derivative techniques and instruments within the limits stipulated in the MMF Regu- Typical investor profile lation The Compartment is an actively managed investment ve- The Compartment may enter into Repurchase Agree- hicle for investors: ments for liquidity management purposes and into Re- › Who wish to invest in high quality short term verse Repurchase Agreements. fixed-income securities. The investment process integrates ESG criteria based on › Who are averse to risk. proprietary and third-party research to evaluate investment risks and opportunities. When selecting the Com- Investment policy and objectives partment’s investments, securities of issuers with low The Compartment’s objective is to offer investors a high ESG characteristics may be purchased and retained in level of protection of their capital denominated in US the Compartment’s portfolio. dollars and to provide a return slightly higher than money market returns, while having a high level of li- Exposure to Reverse Repurchase Agreements and Re- quidity and observing a policy of risk spreading. To purchase Agreements achieve such outperformance, the Compartment should The Compartment does not expect to be exposed to Re- be permitted to employ extended limits for the portfolio purchase Agreements and Reverse Repurchase Agree- risk such as weighted average maturity and weighted av- ments. erage life as stated in the main part of Annex 4. Risk factors To fulfil this objective, the Compartment invests in The risks listed below are the most relevant risks of the money market instruments and in deposits that meet Compartment. Investors should be aware that other risks the applicable criteria set in the MMF Regulation. may also be relevant to the Compartment. Please refer The reference currency of the Compartment is not nec- to the section "Risk Considerations" for a full description essarily identical to the Compartment’s investment cur- of these risks. rencies. Financial derivative instruments will be used to systematically hedge the exchange rate risk inherent in › Counterparty risk the investments of the Compartment against the Com- › Collateral risk partment’s reference currency. › Credit risk Investments will be made in money market instruments (i) which have received a favourable assessment pursu- › Credit rating risk ant to the Management Company internal credit quality › Interest rate risk assessment procedure and (ii) issued by issuers that › Repurchase and reverse repurchase agreement have a minimum rating of A2 and/or P2 as defined by risk one of the leading rating agencies or in securities with › Financial derivative instruments risk identical quality criteria. The capital invested may fluctuate up or down, and in- Investments in Rule 144A securities will not exceed vestors may not recover the entire value of the capital 30% of the Compartment’s net assets. initially invested.

In addition, the Compartment may invest up to 10% of Risk management method: its net assets in shares or units of other short-term Commitment approach

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Managers: uses to value a material part of the assets. PICTET AM S.A., PICTET AM Ltd For further information, please refer to our website Reference currency of the Compartment: www.assetmanagement.pictet. USD Calculation Day Cut-off time for receipt of orders The calculation and publication of the NAV as at a Valu- Subscription By 1:00 pm on the relevant Valuation Day. ation Day will take place on the Valuation Day concerned (the “Calculation Day”). Redemption By 1:00 pm on the relevant Valuation Day. Payment value date for subscriptions and redemptions Switch The Week Day following the applicable Valuation Day. The more restrictive time period of the two compartments concerned. Initial subscription period The initial subscription will take place from 23 October Frequency of NAV calculation 2020 until 30 October 2020 until 1 pm, at an initial The NAV will be determined as at each Banking Day price equal to 100 USD. The payment value date will be (the “Valuation Day”). 2 November 2020.

However, the Board of Directors reserves the right not to The Compartment may however be launched on any calculate the NAV or to calculate a NAV that cannot be other date decided by the Board of Directors of the used for trading purposes due to closure of one or more Fund. markets in which the Fund is invested and/or which it

PICTET-ENHANCED MONEY MARKET USD

Type of Initial min. Fees (max %) * share Management Service** Depositary Bank I USD 1 million 0.20% 0.10% 0.05% A *** 0.20% 0.10% 0.05% P − 0.40% 0.10% 0.05% R − 0.60% 0.10% 0.05% Z − 0% 0.10% 0.05% J USD 50 million 0.20% 0.10% 0.05%

*Per year of the average net assets attributable to this type of share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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80. PICTET-ENHANCED MONEY MARKET EUR

The Compartment qualifies as a “Standard Variable Net The Compartment may use derivative techniques and in- Asset Value Money Market Fund” in accordance with the struments within the limits stipulated in the MMF Regu- MMF Regulation. lation

The Compartment may enter into Repurchase Agree- Typical investor profile ments for liquidity management purposes and into Re- The Compartment is an actively managed investment ve- verse Repurchase Agreements. hicle for investors: The investment process integrates ESG criteria based on › Who wish to invest in high quality short term fixed-income securities. proprietary and third-party research to evaluate investment risks and opportunities. When selecting the Com- › Who are averse to risk. partment’s investments, securities of issuers with low ESG characteristics may be purchased and retained in Investment policy and objectives the Compartment’s portfolio. The Compartment’s objective is to offer investors a high level of protection of their capital denominated in EUR Exposure to Reverse Repurchase Agreements and Re- and to provide a return slightly higher than money mar- purchase Agreements ket returns, while having a high level of liquidity and ob- The Compartment does not expect to be exposed to Re- serving a policy of risk spreading. To achieve such out- purchase Agreements and Reverse Repurchase Agree- performance, the Compartment should be permitted to ments. employ extended limits for the portfolio risk such as weighted average maturity and weighted average life as Risk factors stated in the main part of Annex 4. The risks listed below are the most relevant risks of the To fulfil this objective, the Compartment invests in Compartment. Investors should be aware that other risks money market instruments and in deposits that meet may also be relevant to the Compartment. Please refer the applicable criteria set in the MMF Regulation. to the section "Risk Considerations" for a full description The reference currency of the Compartment is not nec- of these risks. essarily identical to the Compartment’s investment cur- › Counterparty risk rencies. Financial derivative instruments will be used to › Collateral risk systematically hedge the exchange rate risk inherent in the investments of the Compartment against the Com- › Credit risk partment’s reference currency. › Credit rating risk Investments will be made in money market instruments › Interest rate risk (i) which have received a favourable assessment pursu- › Repurchase and reverse repurchase agreement ant to the Management Company internal credit quality risk assessment procedure and (ii) issued by issuers that have a minimum rating of A2 and/or P2 as defined by › Financial derivative instruments risk one of the leading rating agencies or in securities with The capital invested may fluctuate up or down, and in- identical quality criteria. vestors may not recover the entire value of the capital In addition, the Compartment may invest up to 10% of initially invested. its net assets in shares or units of other short-term Risk management method: and/or standard money market funds within the meaning Commitment approach. of the MMF Regulation, including other Compartments of the Fund pursuant to Article 181 of the 2010 Act

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used for trading purposes due to closure of one or more Managers: markets in which the Fund is invested and/or which it PICTET AM S.A., PICTET AM Ltd uses to value a material part of the assets. Reference currency of the Compartment: For further information, please refer to our website EUR www.assetmanagement.pictet. Cut-off time for receipt of orders Calculation Day Subscription The calculation and publication of the NAV as at a Valu- ation Day will take place on the Valuation Day By 1:00 pm on the relevant Valuation Day. concerned (the “Calculation Day”). Redemption By 1:00 pm on the relevant Valuation Day. Payment value date for subscriptions and redemptions The Week Day following the applicable Valuation Day. Switch Initial subscription period The more restrictive time period of the two compart- The initial subscription will take place from 23 October ments concerned. 2020 until 30 October 2020 until 1 pm, at an initial Frequency of NAV calculation price equal to 100 EUR. The payment value date will be The NAV will be determined as at each Banking Day 2 November 2020. (the “Valuation Day”). The Compartment may however be launched on any However, the Board of Directors reserves the right not to other date decided by the Board of Directors of the calculate the NAV or to calculate a NAV that cannot be Fund.

PICTET – ENHANCED MONEY MARKET EUR

Type of Initial min. Fees (max %) * share Management Service** Depositary Bank I EUR 1 million 0.20% 0.10% 0.05% A *** 0.20% 0.10% 0.05% P − 0.40% 0.10% 0.05% R − 0.60% 0.10% 0.05% Z − 0% 0.10% 0.05% J EUR 50 million 0.20% 0.10% 0.05%

* Per year of the average net assets attributable to this type of share. **An additional 5 basis points fee applies for hedged Share Classes. *** Please refer to www.assetmanagement.pictet

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For further information, please visit our websites:

www.assetmanagement.pictet www.pictet.com

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